World Bank Group's new Country Partnership Framework prioritises jobs and resilience

The World Bank’s Board of Executive Directors discussed the new 7-year Country Partnership Framework (CPF) for Nepal on May 29, 2025. The CPF focuses on the fundamentals of job creation and building resilience to natural disasters, including those linked to climate change.

“Creating jobs is not just at the heart of our mission, it is also the lifeline that can drive Nepal’s sustainable and resilient growth,” said World Bank Country Division Director for Maldives, Nepal, and Sri Lanka David Sislen. “The CPF builds on more than 60 years of partnership between the World Bank Group and Nepal and will leverage development partner collaboration and private sector solutions to drive growth, job creation, and investments.”

Under the CPF, the World Bank Group aims to make available about $2.7 billion to achieve the CPF’s outcomes of helping create more and better jobs, strengthening connectivity and access to services, and enhancing resilience to natural disasters and climate risks.

In the immediate term, the World Bank Group will prioritize policy reform for growth, tourism, digital connectivity, and integrated urban development as engines of growth and job creation.

This will include creating a more investment-friendly environment with reforms that enable private sector-driven growth and investment; enhancing digital connectivity and access to digital government services for better productivity, governance, and service delivery; and improving the competitiveness and services of urban centers like the Kathmandu Valley and secondary cities to unlock their potential as tourist and investment destinations.

“We support Nepal in creating more and better jobs, bolstering disaster preparedness, and contributing to a sustainable future by mobilising domestic and international private capital, promoting public-private partnerships, and enhancing institutional capacity,” said regional director for South Asia at IFC Imad N Fakhoury. "The World Bank Group’s Country Partnership Framework will guide our efforts in advancing reforms that will unlock private sector investment and strengthen the business environment to make a meaningful difference in the lives of the people of Nepal."

As a cross-cutting priority, the World Bank Group will help strengthen the accountability and effectiveness of public sector institutions to improve the public sector’s capacity to deliver results for Nepal and its people.

“MIGA is committed to supporting Nepal’s development goals by providing political risk insurance and leveraging other guarantee instruments through the World Bank Group Guarantee Platform,” said director for Economics and Sustainability of MIGA Sebnem Erol Madan. “By mitigating investment risks, MIGA aims to attract private sector investments that are crucial for creating jobs and strengthening economic resilience," Madan said, adding that through the partnership with the World Bank and IFC under the new Country Partnership Framework, they aim to support Nepal to harness its assets and build a more sustainable and prosperous future.

The CPF is informed by a comprehensive analytical and evaluation program, broad-based consultations with stakeholders across all seven provinces, and the government's 16th Plan, which lays out its national development priorities.

World Bank outlines four key reforms to boost growth, create jobs

Nepal has achieved remarkable success in poverty reduction, nearly eradicating extreme poverty, largely driven by remittances. To strengthen future growth, Nepal should prioritise policy actions that unlock domestic opportunities, according to the World Bank’s Nepal Country Economic Memorandum: Unlocking Nepal’s Growth Potential, released today.

Despite progress, Nepal’s economic growth lags regional peers, it reads, adding that Nepal's economy grew at an average annual real rate of just 4.2 per cent between 1996 and 2023, ranking sixth out of eight South Asian nations. Structural challenges such as low productivity, declining exports, and a stagnant industrial sector have held back the economy and led to slow job creation in non-agriculture sectors. Young workers are migrating abroad in search of better job opportunities as domestic prospects remain limited.

“Nepal's success in poverty reduction is impressive, but its economic potential remains largely untapped,” said World Bank Division Country Director for Maldives, Nepal, and Sri Lanka David Sislen. “Nepal has significant potential to drive stronger growth and create jobs by implementing key reforms to increase the returns from migration, boost exports, use hydropower efficiently, and boost digitalisation.”

“The 16th Plan for Nepal outlines a vision of good governance, social justice, and prosperity and prioritizes productivity and competitiveness, decent and productive jobs, social security, and ensuring a smooth transition from LDC status,"  vice chair of the National Planning Commission (NPC) Prof Dr Shiva Raj Adhikari said, adding that the government is committed to ensuring an enabling policy environment for Nepal’s sustainable growth.

The Nepal Country Economic Memorandum produced every five years, offers a roadmap for faster growth in key sectors. It recommends policy actions in four critical areas to unlock Nepal's economic potential.

Getting more out of migration: A systematic and institutionalised migration system can enhance the returns from migration. Integrating migration into national development, job creation, and poverty reduction strategies will provide a platform to work towards such a system. Policies should focus on reducing the cost and increasing the benefits and safety for current low-skilled migrants, while also eyeing longer-term skill and destination diversification. Expanding and better implementing bilateral labor agreements will be critical. Initiatives promoting entrepreneurship and retraining and reskilling programmes would allow returning migrants to reintegrate into the domestic labour market.

Improving export performance: Improving market competition in key sectors and addressing infrastructure deficits can boost exports. Better managing inflationary pressures would address the erosion of exporters’ price competitiveness. Encouraging people to use remittances for investments and business growth could help ease inflation. Simplifying the process for businesses to get tax refunds on imported materials and lowering import taxes would make it easier for them to export more products. With Nepal’s transition from Least Developed Countries (LDCs) status and the loss of trade preferences, authorities should seek additional preferential trade agreements. 

Harnessing the potential of hydropower: Developing a clear financing strategy to develop the hydropower sector will help mobilise much-needed investments. This strategy could include developing the domestic bond market and an effective framework for large-scale public-private partnerships. Strengthening the regulatory and legal frameworks, by reducing bureaucratic red tape and streamlining the current licensing process, would improve the structure of the electricity market and attract additional investment.

Boosting the digital sector: Updating the Telecommunications Act and the digital strategy and adopting key digital infrastructure faster would boost the development of the digital sector. Low digital skills, one of the key roadblocks in the sector, need to be addressed by integrating these skills in school curricula and through training programmes for different age groups and demographics.

Government suspends issuing new work permits for foreign employment

 The Department of Foreign Employment (DoFE) has suspended issuing work permits physically to foreign employment seekers with effect from Friday, though online work permit issuance will continue with limited quota.

Issuing a press  note, the Foreign Employment Office said the the department has directed not to issue new work permits for foreign employment physically until further notice as the government has already suspended domestic and international flights. "Since the international flights have been suspended from Thursday, there will be no issuing of work permits physically.

However, the online access for renewal of the work permits will  continue, the department's press note reads.

Last year, the government suspended issuing work permits on March 12 after the government imposed the lockdown across the country. It reopened only after six months.

Government plans to increase senior citizen allowance to Rs 5,000 per month

 The government is planning to increase allowance of senior citizens as it is preparing to hold election.

While addressing his party gathering organised at Chishankhugadhi in Okhaldhunga today, deputy prime minister Ishwor Pokhrel today confirmed to increase the allowance of senior citizens to Rs 5,000 per month.

Though, the Nepal Communist party (NCP) – during the election – had promised to increase the allowance in its election manifesto, the government lacks resources due to shrinking revenue base. However, Pokharel also blamed the breakaway faction – in his own words – of ruling party opposed the plan to implement in the last fiscal year. He however, did not mentions who opposed the government plan.

But the idea of distribution of state resources – to take political benefit by any party – is the misuse of the tax paid by the people. The government is expected to bring such distributive programmes to attract more votes in the election that is has proposed for April and May. The minister also argued that the government decided to seek a fresh mandate of the people as it was cornered and barred from working smoothly. He reiterated that the government is committed to work for the development and prosperity of people.

Outsourcers apply for merger

The outsourcers have applied for merger as the government has increased the bank guarantee amount for them.
“Some 226 manpower agencies have applied for merger after the government amended the Foreign Employment Act to encourage them to go for mergers, , according to the Department of Foreign Employment (DoFE). “After the merger process is completed, the 226 firms will become 98 manpower agencies.”
“Some 576 manpower companies have deposited their bank guarantee while some 533 have deposited cash guarantee, according to the amended Act, till today,” the department informed, adding that the government – through the amendment – has increased the guarantee money to operate a recruiting agency to up to Rs 60 million, some 20-fold increase from the previous amount forcing the manpower agencies to either merge or close down. “Those, which can not deposit increased bank guarantee amount will be forced to close down.”
Earlier, the outsourcing firms had been paying Rs 3 million as guarantee money – Rs 700,000 in cash and Rs 2.3 million as bank guarantee to run their business. There are almost 1,200 recruiting firms at present.
The government has fixed September 3 as the final deadline to submit increased bank guarantee for them. “If they fail to submit the increased bank guarantee amount, the department will revoke their recruiting licence,” the department informed, adding that the department has given the manpower agencies ample time to abide by the new provision.
According to the new law, the recruiting agencies sending up to 3,000 workers per year must deposit Rs 5 million and submit Rs 15 million as bank guarantee. Likewise, the outsourcing agencies sending between 3,000 and 5,000 workers must deposit Rs 10 million and submit Rs 30 million in bank guarantee, it reads, adding that those, who supply over 5,000 workers per year must deposit Rs 20 million and provide a bank guarantee of Rs 40 million to start their operation.

Poverty to be reduced through job creation: PM

Prime Minister KP Sharma Oli today said that the government’s top priority is to alleviate poverty through employment generation.
Addressing the two-day National Labour and Employment Conference 2019 – which kicked off in the capital today – he stressed on the need to reform the current education system and modernise the agriculture sector to help create more job opportunities and bring down the rate of poverty.
“Our agricultural system is still traditional and we have not been able to switch to mass production through the use of modern technology,” he said, adding that
Likewise, access to market is yet another problem that farmers have been facing today,” Oli added.
Lamenting those who prefer to go abroad for work, he said, that employment opportunities are gradually being created in the country. “It is necessary that every job gets respect and everyone gets a minimum wage, which is scientific to retain people in the country itself,” he said, stressing on government’s move to strictly implement minimum wage in every sector.
Archaeological sites are Nepal’s precious assets that could promote both tourism and job creation, the premier added.
Ministry of Labour, Employment and Social Security is organising the two-day ‘National Labour and Employment Conference’ starting from today with an objective to identify opportunities and gaps for employment creation and develop a dialogue-led consensus towards tackling pertinent labour and employment issues in Nepal.
“Earlier, foreign employment was our compulsion, now it has become a necessary compulsion,” said former labour minister Ramesh Lekhak, addressing the conference.
Lekhak also urged the government to focus more on implementation of development projects than just talking about development also to create jobs at home. “The concept of work has changed drastically,” he said, adding that discussions and meetings are no longer considered to be work. “It’s only the results that matter.
As some 11.6 per cent Nepalis are unemployed and 30 per cent semi-employed, the government aims at promoting an environment conducive to employment generation in the country, according to 2017-18 Labour Force Survey that further states that only 37 per cent of the workforce is engaged in the formal sector whereas 62.2 per cent is engaged in the informal sector. In the informal sector, the wage is very low calling for focus on regulating the informal employment sector. But there is a huge mismatch between the jobs in the market and available manpower.
“The skills and qualification of the people should be linked with possible opportunities in the employment market,” labour minister Gokarna Bista said, adding that formal channels should be ensured for sending Nepali people abroad, if they wanted to go for foreign employment.
Bista, on th occasion, also said that the government has initiated different programmes, including the Prime Minister Employment Programme targeted at generating employment opportunities in the country itself.
Representatives and experts from the government, private sector, trade unions, development partners, and non-governmental organisations are taking part in the conference that discusses on labor and employment policy, future of work, information technology, employment and wage, productivity, and national economy.
The conference also aims at exploring the avenues for labour and employment, strengthening worker-employer relationship, attracting Nepali youths towards domestic labour and ultimately strengthening the country’s economy. The organisers are hopeful that the recommendations furnished by the experts in the conference will help launch more strategic programmes in the labour and employment sector.
The first day of the conference today witnessed discussions and deliberations on ‘labour environment in the country’, and ‘existing labour-related policies and other opportunities’.

Japan to hire only nurses from Nepal this year

Japan is hiring only nurses this year, though, number of nurses that Japan will hire has not yet been ascertained.
The Japanese government is going to hire only nurse this year, though there has been talk about Nepali foreign job aspirants will be able to go to Japan to work in 14 different sectors.
The language and skill test will be conducted in October for those aspiring to go for nursing jobs in Japan, according to director general of Department of Foreign Employment Bhishma Kumar Bhusal.
The government and concerned Japanese authorities will jointly conduct the tests, he said, adding that the bilateral talks between Nepal and Japanese government has finalised to take tests for aspiring nurses, who wants to go to Japan, in October. “From next year, Nepalis who want to join other professions listed by Japan will be able to go to the destination.”
According to the bilateral labour agreement signed with Japan – on March 25, 2019 – the Japanese government will hire Nepali migrants in 14 different sectors, including nursing.
The nurses will have to sit for the 20-minute Japanese language test and one-hour skill – related to the jobs – test but the department has alerted the youth not to go to any institutions and pay money in a false assurance of a job in Japan.
There are some institutions that have been taking money and guaranteeing people of jobs in Japan, he said, alerting the job aspirant not to fall for such scams. “The government will take necessary action against such firms.”

Government names top 30 council to boost business

The government has formed a 30-members Industry, Commerce, Promotion Dialogue Council headed by the Prime Minister K P Oli to improve the country’s business environment. The council has nine ex-officio members representing various trade and commerce umbrella organizations, apart from – Jagdish Agrawal, Padmajyoti, Ambika Shrestha, Pramila Rijal, Upendra Mahato, Kailash Shirohiya and many others – the who is who in the business and industry sector of the country.
A cabinet meeting on September 23 has formed the panel to help interact, co-ordinate and build rapport between government and private sector to identify and promote investment areas, increase productivity, create jobs, increase per capita income and to fulfil the objectives of national campaign ‘Prosperous Nepal and Happy Nepali’.
According to the decision, ministers of industry, commerce and supplies; finance; energy; water resources and irrigation; and culture, tourism and civil aviation are members of the PM-led committee.
The government formed the council as the private sector has been asking the government that their concerns have not been addressed by the government.

Government to focus on creating jobs

The government has claimed that no Nepali youths will be flying abroad for employment in next five years.
Presenting the government’s policy and programmes for next fiscal year today, President Bidhya Devi Bhandari also claimed – in the the joint meeting of both the houses – that by 2023 the average earnings of Nepalis will be doubled.
Nepal needs to create some 240,000 new jobs every year, a recent report from the World Bank read, meaning the government has to create some 658 new jobs everyday to retain the youths within the country.
President Bhandari also announced a new programme, 'the Prime Minister’s Employment Programme', to achieve the employment target. However, Prime Minister’s Employment Programme could meet the same fate as the Youth Employment Fund that was set up during the tenure of the then finance minister Dr Baburam Bhattarai. It has failed due to politicisation.
Though, the almost two-third majority left government's policy seems encouraging it has not presented any programme on how to create employment in the country. The 'highly ambitious' target has also claimed to double the per capita income in the next five years, though the policy and programme is brought for a year. Currently, per capita income of the Nepalis stands at $1,004. Though, current trend shows that it took nine years to double the per capita income to $1004, it is possible to double the income in five years, if the annual growth is recorded in an average of 15 per cent. "If the inflation remains same, the government could double the income in five year with an annual growth of 15 per cent," said economist Bishwo Poudel. "However, the government needs to spend $10 billion to $15 billion to achieve 15 per cent growth every year," he said, asking the government on how to manage such huge budget and how does it tame the inflation at the time when the price of petroleum products has been regularly increasing. The incumbent government has increased the price of petroleum products for the fourth time, since it took to power three months ago.
Likewise, the government has also claimed to make the country prosperous and developed nation within a decade.
However, former finance minister Dr Ram Sharan Mahat said that there are hardly any new programmes and projects to translate those targeted figures into reality. "It is the repetition of past programmes,” he said.

International trade creates jobs in the developing country: UNCTAD chief

UNCTAD secretary-general Mukhisa Kituyi has defended international trade as the best means for developing countries to create jobs and tackle inequality.
Trade deals became a hot topic in the United States (US) presidential election earlier in the month with president-elect Donald Trump vowing to withdraw from the Trans Pacific Partnership on the first day of his presidency. Earlier in 2016 the United Kingdom (UK) also voted to withdraw from the European Union (EU) on as-yet unclear trade terms.
Kituyi said that while politicians in the global north may be 'getting cold feet' on trade, poorer countries have no choice but to deepen trade relationships.
"As an ex-politician myself, I know that politicians must do a better, more honest job of discussing the costs and benefits of trade," said Kituyi, who before becoming UNCTAD secretary-general served as trade minister in Kenya. "Too often in the global north, leaders, dictated by electoral needs, talk down trade, storing up problems for the future."
"To blame trade for job losses is to use a convenient scapegoat, but it ignores both the benefits of trade and the disruptive nature of technology," he said, adding that trade does not explain the relative decline in labour productivity. Nor does it account for the erosion in social protection."
What trade does do, Kituyi said, is provide the jobs required by rising populations in developing countries. "That is why developing countries are backing new, internationally integrative projects like Africa's Continental Free Trade Area and China's One Belt, One Road (OBOR) initiative."
However, Kituyi said, changing trade patterns are disruptive. He said policymakers must address the effects of change to protect the ultimate benefits of trade.
"At the international level, trade deals need social and environmental safeguards," he said. "Competition policy and consumer protection can help to defend small businesses against the excesses of corporate power."
"The nature of trade is changing, shifting to services, to developing countries, and to more being done online, But it is always going to generate jobs. And this is an urgent priority for any sensible politician, Kituyi concluded.