Amid large scale job and income loss, families await support

 According to recent rapid survey conducted by Sharecast Initiative Nepal with support from UNICEF during the third quarter of May 2021, some 53 per cent had lost jobs, and 40 per cent of them lost both jobs and income in the form of remittances, sales and other activity they used as a source of additional income.

The survey covered approximately 3,000 families with children. Agriculture and tourism, being the biggest employment industries, including people depending on daily wages, are most likely to incur the most significant economic losses. Bagmati and Karnali appear to be most affected. This large-scale job and income loss threaten to deteriorate further the socio-economic well-being of the children and their families, the survey reports, adding that most families may reduce food intake and essential expenses, including nutrition and education for children. "About 99 per cent of the families reported receiving no support to stave off the hardship."

Over the past year, UNICEF’s nationwide bi-monthly survey, Child and Family Tracker, showed that over 60 per cent of households with children experienced economic and livelihood losses in the first two months of initial lockdown. Although most families with children were able to recover economically since then, some 40 per cent of them remained at risk of falling into poverty. "The overall income distribution did not catch up to levels before lockdowns," the survey further reads, adding that over 20 per cent of the families had to reduce the quantity or change their children's variety of food intake. "Children in almost 30 per cent of households had access to distant learning." Yet, most children living in low-income households and belonging to vulnerable and marginalised groups could not take advantage of it.

However, child labour reduced from 31 per cent of households reporting that their children worked before lockdown to 8 per cent during the lockdown, it adds. However, children in over 20 per cent of these households began working after the lockdown ended. This implies that while the lockdown contributed to a significant reduction in child labour, children are most likely to start work to help their families cope with the economic struggles, concluded the survey.

Using the survey’s evidence, UNICEF implemented emergency cash transfer in response to the emerging needs of more than 10,000 children. But UNICEF’s data also implies that many more children are in need in this challenging time. 

Likely, children in families depending on daily wages and those, who lost income and jobs will experience adverse effects of their caregivers’ financial situation on their education, health and psychological wellbeing, according to the survey. Expanding the social protection coverage of children using existing systems and providing additional cash support to prevent shocks on children is crucial now more than ever. "In this regard, UNICEF congratulates the government of Nepal on the recent expansion of the Child Grant Programme and the increase in the SSA benefit size of up to 33 per cent." 

However, there are many more that need support, it adds, "Also, it is important to increase the amount of the transfer to deal with the additional stress caused by the pandemic."

Lawmakers ask to bring supplementary budget before regular budget

Lawmakers today demanded the government to bring supplementary budget – to mitigate the impact of the coronavirus – before the regular budget for the next fiscal year.
Commenting on the ‘Principals and Priorities of the Budget for the next fiscal year’ – presented by the finance minister Dr Yub Raj Khatiwada at the house yesterday – they asked the government to first bring immediate relief measures, through supplementary budget, as the economy has suffered a lot due to one-and-a-half month lockdown clamped to contain the spread of coronavirus.
The parliamentarians, on the occasion, also demanded the government to prioritise four sectors—employment generation, agriculture, health and the education—in the federal budget for the next fiscal year 2020-21.
They also said that as the coronavirus (Covid-19) pandemic is taking away jobs from thousands of Nepalis within the country and out in different labour destinations, the primary focus of the new budget should be creating jobs. “The government to hold adequate discussions within the House and outside before presenting the budget,” they said, adding that
The finance minister has to present the budget every year on Jesth 15, which falls on May 28 this year.
Dr Khatiwada will present the budget for next fiscal year 2020-21 in the Parliament on May 28, though the budget session has started late due to coronavirus pandemic. The government has escaped the pre-budget discussions, and holding the discussion from today before programmes and Policies to be presented by the president on May 15.
The lawmakers – of almost all the political parties in the House – has a unanimous view that the government should not set ambitious targets and be realistic in its budget focusing on resolving the problems created by the pandemic. The government has as always like in the normal times has targeted to get double digit growth, which it has failed to achieve in the last fiscal year and fiscal year too, and of course seems not possible in the next fiscal year also.
The incumbent government and finance minister – who is going to present the budget for the third year in the row – has repeatedly failed to not only achieve the growth target but also crack whip on inflation, and also create investment friendly environment. “The private sector that has already been under threat from the government and its machinery that have been directly involved in the extortion, has not been able to operate business but the government has ordered to pay the complete salary of last month and thus month too,” said an entrepreneur, who did not wanted to be named due to fear from the finance minister and the incumbent government that does not like to hear criticism. 
The government has failed to pay the salary to government staff, how can private sector – without operating industries – pay salary of the workers for two months without work, he said, adding that they have not been reaping huge profits as assumed by the public. “The government is taking loan from the development partners to pay salary to its staff, and how can the private sector pay salary to its workers without any support.”
On the occasion, Nepali Congress lawmaker Minendra Rijal, also the shadow finance minister, said that thousands of migrant Nepali workers, and also those inside the country, have lost their jobs. “The government must thus focus on creating jobs,” he said, adding that the government also does not have exact data of how many Nepalis are currently employed abroad, though estimates suggest the number could be in millions.
There are over 1.5 million Nepali youths in Malaysia, Qatar, Saudi Arabia, the United Arab Emirates and Kuwait alone, according to the Migration in Nepal report. Likewise, some 3 million to 4 million people are employed in India. “The economic slowdown in these source countries has already hit the job market hard,” he said, adding that some 3,500 Nepali workers have registered to return home from Kuwait. “More unemployed Nepali migrant workers means more drop in remittance inflow, which will lead to decline in the import and affect revenue mobilisation.”
Urging the government to bring a realistic budget, he also said that despite agriculture accounting for one third of the country’s economy, the sector still continues to be neglected.
The lawmakers also demanded to allocate at least 10 per cent of the budget for the agriculture sector from currently 5 per cent that comes to around Rs 1.53 trillion.
The lawmakers also called the government to empower the local governments to help them implement projects more effectively, spend more to upgrade healthcare system, and invest more to develop infrastructure for online studies.

Government opens Malaysian job 'partially'

The government has opened the Malaysian job albeit partially.
The Ministry of Labour, Employment and Social Security has decided to issue labour permits to the Malaysia-bound Nepali migrant workers, provided that the Embassy of Malaysian in Kathmandu directly issues visas to them.
The Department of Foreign Employment (DoFE) – after the ministry's directive – today issued labour permits to 20 workers, who had directly approached the embassy for working visas. The embassy informed the department – in a letter on January 18 – that visas had been granted to the workers, who would be working with a tunnel company in Malaysia. Though departure of these workers does not mean that the government has resumed sending workers to Malaysia, government said that it will not have any problem issuing labour permits to the concerned workers, if the embassy oversees their pre-departure process and grants visas.
The ministry had sent the department a list of workers, who had been granted visas. The work permits has been issued based on the ministry’s decision, the letter from the embassy and the application of the employer company. 
The batch of 20 workers, who obtained labour permits and subsequently left for Malaysia, is the first group of Nepali workers to reach Malaysia since both countries signed a labour deal on October 29, 2018.
Recruiting agencies have also been demanding the government to make arrangements for departures of those workers with calling visas issued by the Malaysian authorities. 
According to Nepal Association of Foreign Employment Agencies, nearly 9,000 workers had obtained calling visas from the Malaysian government before the government suspended labour migration to Malaysia.
The labour department today asked all recruiting agencies to submit exact details and documents of the people – who have already received ‘calling visas’ from Malaysia –within 15 days to cross check the number of Nepalis, who have received calling visa. Calling visas are confirmations from their employers about the job.
The outsourcers have, however criticising the government for issuing labour permits to only 20 workers – out of nearly 9,000 with calling visas – who had directly applied for working visas at the embassy, would not submit the details of the workers.
The association has said – issuing a statement – that the recruiting agencies have already submitted these details to the Foreign Employment Office, Tahachal.
Last May, the government had temporarily halted sending labourers to Malaysia as workers were said to be charged unnecessary fees for related services by private companies, namely Immigration Security Clearance and One Stop Centre. The departure of Nepali migrant workers has been stopped in the absence of the mechanism to implement the deal even though it has been more than two months since Nepal and Malaysia signed the labour agreement.
The leaders from various political parties – including Nepali Congress and Rastriya Prajatantra Party Nepal – had urged the Federal Parliament to resume the halted migration process to Malaysia at the earliest as the overnment has still not lifted the temporary ban on Nepali workers from flying to the Southeast Asian nation.
On the other hand, Malaysian government had on January 7 said that it will finalise all preparations to hire foreign migrant workers within two months.