Government mulls setting up labour bank
The government is planning to establish a separate financial institution to provide easy banking services to migrant workers and also their dependents back home.
The government had announced to open a separate financial institution for migrant workers in the common minimum programme it unveiled recently. "Such a financial institution will provide low-interest loans and financial services for migrant workers," secretary at the Ministry of Labour and Employment Suresh Man Shrestha said, adding that they can be set up in public-private-partnership (PPP) model. "Labour and Employment Ministry, Finance Ministry and central bank will jointly initiate discussions with the private sector soon."
The government will give seed capital from Migrant Workers' Welfare Fund to start the bank that can facilitate migrant workers in different ways.
It could also use remittances sent by migrant workers in productive sector, he added. "The returnees can easily take loan from the bank to start their business."
The country has been receiving remittance more than the total budget outlay. Nepal received remittances worth $4.75 billion last year.