Nepal’s “Free Visa, Free Ticket” policy, introduced in 2015, was hailed as a landmark effort to minimize migration costs for aspiring workers heading to Gulf countries and Malaysia. The policy aimed to ensure that employers bore the brunt of recruitment costs, leaving workers to pay only nominal fees for essential expenses such as medical tests and social security contributions.
Yet, nearly a decade later, this policy’s promises remain largely unfulfilled. Migrant workers continue to grapple with exorbitant fees, misinformation, and systemic exploitation, resulting in cycles of debt and disillusionment.
Free Visa, Free Ticket: Imagination vs. Reality
The “Free Visa, Free Ticket” policy was designed to limit migration costs to around $75 per worker. However, interviews with migrant workers reveal a starkly different reality. Many report paying between $1,500 and $2,200 for recruitment services, amounts that far exceed Nepal’s annual GDP per capita, which was $1,324 at the end of 2023. This discrepancy arises from a mix of weak enforcement and deeply entrenched corruption within the labor recruitment system.
Recruitment agencies often exploit loopholes in the policy, charging workers for services like documentation and placement overseas, which employers are legally obligated to fund. Migrants are frequently unaware of the policy’s protections or feel powerless to challenge these practices. As one state official who previously worked in the Nepali Embassy in Saudi Arabia explained, “The lack of scrutiny and enforcement allows agencies to act with impunity. Political connections further shield them from accountability.”
The result is that workers are forced to rely on informal loans from family, friends, or moneylenders, trapping them in debt even before they depart. Once abroad, many encounter misrepresented job positions, withheld wages, or lower-than-promised salaries, further compounding their financial struggles.
The labor migration system is plagued by significant asymmetries in information and power. Migrants, particularly those from rural areas, often rely on subagents – informal intermediaries – to navigate the recruitment process. These subagents frequently provide incomplete or misleading information about job contracts, salaries, and working conditions abroad. For instance, some workers are promised roles as drivers or helpers but instead find themselves cleaning toilets or performing heavy manual labor upon arrival.
As one migrant worker recounted, “The agency lied to me. I know how to do tailoring and was promised a tailoring job, but they sent me to clean toilets. I was disgusted by the work and left within two years.”
Real-Life Impact of Nepal’s Policy
Interviews conducted with migrants during field research highlight the pervasive and often systemic power imbalances in labor migration processes. Many participants recounted experiences of contract breaches and lack of accountability from recruiters. For instance, one returnee stated, “I was promised $300 a month, but I received only $200.” Another described being abandoned by their agent, who absconded with their passport and fees, leaving them stranded for months.
Government-mandated orientation programs, which could empower migrants with vital information, are underutilized. Many workers pay agents to skip these sessions, citing logistical challenges like remote training locations and added travel costs. This lack of preparation leaves them ill-equipped to assert their rights abroad.
Despite its bold intent, the “Free Visa, Free Ticket” policy suffers from systemic failures in governance and enforcement. Recruitment agencies and intermediaries operate within a deeply politicized ecosystem, where regulatory bodies often lack the autonomy or resources to enforce compliance. A manpower recruiter candidly noted, “There’s a network of agencies and political authorities that sustain the status quo. Even when irregularities are exposed, consequences are rare.”
Embassies in destination countries, tasked with assisting Nepali workers, have faced criticism for inefficacy. Migrant interviews frequently depict them as unresponsive or ill-equipped to address grievances. This underscores the urgent need to strengthen the role of diplomatic missions in resolving disputes and advocating for workers’ rights.
Nepal’s reliance on labor migration as an economic lifeline complicates efforts to reform the system. Remittances amounted to nearly 26.2 percent of the country’s GDP as of 2023, making migrant workers indispensable to the national economy. This dependency often prioritizes volume over the welfare of individual workers.
Competition among manpower companies for recruitment quotas exacerbates these issues. Agencies vie for contracts with Gulf-based employers, often at the expense of transparency and ethical practices. To offset their costs, they pass financial burdens onto workers, undermining the very premise of the “Free Visa, Free Ticket” policy.
A Decade Later, Change Is Overdue
Addressing the failures of Nepal’s migration system requires a multi-pronged approach. First, stricter enforcement of the “Free Visa, Free Ticket” policy is essential. The Ministry of Labor, Employment, and Social Security and embassies in Gulf countries and Malaysia must be empowered with greater autonomy and resources to effectively monitor agencies and penalize violations to ensure smooth transitions in the three stages of migration: prior to departure, while abroad, and after return. Regular audits of contracts and worker terms before departure can help prevent exploitation, while collaboration with destination countries is crucial to enforcing bilateral agreements.
Second, enhancing transparency and information dissemination can empower migrants to make informed decisions. Expanding the reach of orientation programs and integrating them into local communities can help ensure broader participation. Additionally, maintaining a centralized, publicly accessible database of recruitment agencies, contracts, and violations will enhance transparency and accountability throughout the entire process.
Third, embassies in destination countries must play a more proactive role in protecting workers. Establishing a dedicated grievance mechanism for redress with clear timelines and regional offices and trained personnel for prompt complaint handling is essential, particularly in high-migrant-flow areas. Embassies should play a proactive role in addressing worker grievances and ensuring their rights are upheld.
Finally, fostering collaboration between the public and private sectors is crucial for establishing ethical recruitment practices. South Korea’s Employment Permit System offers a compelling model where government oversight works in tandem with regulated private sector involvement to ensure fairness and transparency. By centralizing recruitment, training, and oversight, the system minimizes opportunities for exploitation while addressing economic needs and worker welfare. This highlights the potential for balanced partnerships to create ethical and effective labor migration frameworks.
The “Free Visa, Free Ticket” policy was a step in the right direction, but its impact has been diluted by systemic weaknesses and exploitative practices. A decade on, the urgency to address these gaps has only intensified. The power imbalances and financial burdens faced by Nepali migrants are not merely individual struggles but reflections of broader structural issues within the labor export economy.
By strengthening governance, enhancing accountability for intermediaries, and prioritizing the rights and well-being of migrant workers, Nepal can transform its migration system into one that truly delivers on the promises of opportunity and equity. For the millions of Nepali workers who brave these journeys, such reforms are not just necessary – they are long overdue.
The field research for this piece was conducted by the author in partnership with Nepal Institute for Policy Research (NIPoRe) in December 2023-January 2024.