Panel suggests remittance cost reduction, incentive package to remitters

A panel formed by the Ministry of Labour, Employment and Social Security has recommended adopting cost reduction measures and incentive package to the senders to promote formal channel in remittance inflow. 

The committee was formed by the ministry to recommend for the productive use of the remittance by receiving it through the formal banking channel. In average, the cost of remittance is around 4.5 per cent while sending the money to Nepal from the labour receiving countries. 

Likewise, the panel has recommended to use the remittance in productive and employment generating sectors, and discourage the informal channel. As per the recommendation, institutional and legal provisions are also suggested for the government. 

A permanent body meant for remittance management mechanism has also been recommended by ensuring the representation of the stakeholders. 

Furthermore, the team has concluded to reform laws to control and regulate informal fiscal transaction and low billing in the foreign trade. 

Similarly, the report goes on to recommend for the policy adoption to receive the payment of the domestic workers and all other migrant workers through the banking system and such provisions should be mentioned while striking the labour agreement with the destination countries. 

Moreover, integrated remittance management information system and provision of cards to the migrant workers as well as different types of services, subsidy in government services by counting the reward point for remitting the money through the formal channel is recommended. 

Foreign employment bond to be announced by the central bank should be made further effective while at least five percent of total shares in the public offering of the public companies should be allocated for those sending remittances back home through formal channel. 

Source: RSS