Nepal’s Diaspora Policy from Sentiment to Strategy

The term diaspora, derived from the Greek word meaning “to scatter” or “disperse,” refers to people who have left their country of origin often for reasons related to education, employment, business, or other socio-economic factors and settled abroad. In Nepal’s case, the roots of diaspora migration can be traced back to the Anglo-Nepal War of 1814–1816. Following the Treaty of Sugauli in 1816, approximately 4,650 Nepali youths were recruited into the British East India Company’s Gurkha Regiment. This marked the beginning of organized overseas employment for Nepalis and laid the foundation for future migration patterns.

Since then, Nepalis have continued to migrate for work in sectors such as agriculture, security services, tea plantations, and more recently, construction, information technology, hospitality, and domestic work particularly in the Gulf states, Malaysia, and South Korea. While many members of the Nepali diaspora have settled permanently overseas, their connection to Nepal remains strong. They retain deep emotional, cultural, social, economic, and political ties with their homeland.

The term “Nepali diaspora” encompasses not only citizens living abroad temporarily or permanently, but also foreign nationals of Nepali origin and their descendants. Regardless of where they reside, they have the potential to make significant contributions to Nepal’s development through cultural preservation, financial investment, technology transfer, policy advocacy, and by promoting Nepal’s identity on the global stage.

Nepal’s Diaspora Policy

Nepal, with its vast and growing diaspora, has made deliberate efforts to engage citizens scattered across the globe in the process of nation-building. To strengthen emotional, cultural, and economic ties with the homeland, the Government of Nepal has initiated the formulation and implementation of a diaspora policy aimed at organizing and mobilizing millions of Nepalis who have migrated abroad for employment, education, business, or permanent settlement. A major turning point came with the establishment of the Non-Resident Nepali Association (NRNA) in 2003, which marked the beginning of structured diaspora engagement. This platform enabled people of Nepali origin living abroad to contribute meaningfully to their motherland. To institutionalize this effort, the government enacted the Non-Resident Nepali Act in 2008 (2064 BS) and the corresponding Regulations in 2009 (2066 BS). These legal instruments defined the identity of Non-Resident Nepalis (NRNs), outlined their rights, and established provisions related to investment opportunities, property ownership, and NRN identity cards.

In 2014 (2071 BS), Nepal introduced the Non-Resident Nepali Policy, an official document to guide diaspora engagement. While the policy aims to enhance diaspora involvement in Nepal’s economic, social, and cultural development, it has faced criticism for its lack of clarity particularly regarding dual citizenship and for weaknesses in implementation.

Several studies have highlighted these limitations:

1. Sinjapati and Limbu (2012) emphasized the importance of skill transfer as a central element of Nepal’s foreign employment policy.
2. Adhikari (2009) observed that the government lacked a long-term vision for managing remittances productively.
3. Thieme (2006) underscored the significance of emotional ties and social networks in sustaining diaspora–homeland relations an area largely overlooked in existing policies.

International initiatives have also played a pivotal role. The NRNA continues to engage with the government on critical issues such as dual citizenship, education, healthcare, and investment climate reform. Similarly, the International Organization for Migration (IOM), in its Migration Profile 2019, provided a comprehensive analysis of Nepal’s 15 million-strong migrant population, examining their socio-economic conditions and identifying policy gaps.

These findings and institutional reviews indicate that while Nepal has taken commendable steps toward developing a diaspora policy, its implementation remains unsustainable, exclusive, and insufficiently participatory.

Looking ahead, Nepal must revise and update its diaspora policy by actively incorporating the insights, experiences, and expertise of diaspora communities. A shift toward a ‘Brain Gain’ strategy is essential to facilitate the transfer of skills, technology, and knowledge. The government should also promote digital initiatives to better connect the younger diaspora with their roots and build stronger partnerships among government agencies, civil society, the private sector, and diaspora networks.

With the right policies and collaborative frameworks, Nepal’s globally dispersed human capital can become a transformative force in the country’s development journey.

International Traditions and Practices

Globally, many countries view their diaspora as strategic partners in national development. Well-crafted policies have allowed nations to mobilize global communities for economic growth, innovation, and cultural diplomacy.

India leverages its 32 million diasporas as a soft power asset. Through OCI cards, celebratory platforms like Pravasi Bharatiya Divas, and academic initiatives, India facilitates travel, investment, and remittance flows—earning $129.1 billion in 2023 alone. China integrates its 60 million overseas Chinese into its development agenda. Programs like the Thousand Talents Plan and Confucius Institutes promote investment, technology transfer, and cultural diplomacy, coordinated by key government agencies.

Israel uses the Law of Return to reinforce ties with Jewish communities worldwide, granting immigration and citizenship. Cultural and educational initiatives sustain its demographic and global outreach objectives. And Ireland employs an inclusive approach through its Global Irish Diaspora Strategy, supporting welfare, entrepreneurship, and cultural engagement. Initiatives like Back for Business and diaspora tourism bolster return migration and connections. These models show that purposeful diaspora engagement grounded in legal clarity, cultural outreach, and institutional support can significantly contribute to national transformation.

The Strategic Value of Strengthening Nepal’s Diaspora Policy

A visionary, inclusive, and action-oriented diaspora policy holds the potential to reshape Nepal’s development trajectory. Across the globe, members of the Nepali diaspora continue to express a profound commitment to their homeland—driven by shared cultural identity, community values, and national pride. Harnessing this sentiment strategically requires robust legal safeguards, targeted incentives, and streamlined administrative procedures.

With the right policies, Nepal can attract significant foreign investment across key sectors such as industry, tourism, education, healthcare, and infrastructure. According to the Nepal Rastra Bank’s Annual Macroeconomic Report for Fiscal Year 2023/24, remittance inflows reached Rs. 1.445 trillion (approximately USD 10.2 billion), marking a 16.5% increase from the previous year. As further noted by TheGlobalEconomy.com, remittances accounted for 26.89% of Nepal’s GDP in 2023, placing Nepal among the highest recipients globally in terms of remittance-to-GDP
ratio.

Despite this substantial contribution, remittance flows often bypass productive sectors such as industry, education, and technology due to bureaucratic constraints and a lack of targeted investment incentives. This underutilization underscores the urgency of channeling diaspora resources toward transformative national priorities. Beyond monetary contributions, the diaspora holds immense strategic value. A well- crafted policy can pave the way for the return of skilled professionals in technology, medicine, academia, and research infusing Nepal’s institutions with global expertise and innovation. Mechanisms such as a Global Nepali Expertise Network, as proposed by diaspora think tanks like the Nepal Policy Institute, could facilitate the integration of diaspora knowledge into educational reform, public sector modernization, and economic planning. The diaspora also embodies intellectual capital, global networks, and advocacy power. From engineers in Silicon Valley to academics in Sydney and entrepreneurs in Seoul, Nepali-origin individuals have made notable strides internationally. Their experiences can be channeled into policy innovation, digital transformation, and institutional reform back home.

Moreover, diaspora communities serve as cultural ambassadors—promoting Nepal’s identity through tourism, arts, and international branding. Their influence extends further: contributing to governance, strategic planning, diplomacy, and even crisis response, thereby amplifying Nepal’s visibility and leadership on the world stage. We live in an era shaped by both brain drain and brain circulation. In many underdeveloped countries, the relationship between diaspora and development has become nearly synonymous. For Nepal to benefit fully, it must urgently adopt a coherent and forward-looking diaspora policy one that transforms goodwill into coordinated national advancement and elevates the diaspora from symbolic participants to enduring partners in progress.

Current Situation and Challenges

Nepal has taken several steps to strengthen its engagement with citizens living abroad. Notable among these are the Foreign Employment Policy 2068 (2011) and the Preliminary Framework of the Nepali Policy for Overseas Citizens, which aim to formalize diaspora relations and promote inclusive development. While these initiatives mark important progress, Nepal still lacks a comprehensive, coherent, and practically implementable diaspora policy that aligns long-term national interests with the aspirations of its global citizens.

The existing framework falls short in addressing several critical areas:

1. Dual citizenship remains unresolved, despite constitutional provisions for NRN citizenship.
2. Political participation for diaspora members is not legally recognized.
3. Investment facilitation and property rights are limited by bureaucratic hurdles and unclear regulations.
4. Institutional mechanisms for sustained government–diaspora coordination are fragmented and under-resourced.

Despite these gaps, the Government of Nepal has made commendable efforts through targeted legislative and institutional measures:

1. NRN Citizenship Provision: A special category of citizenship has been introduced for individuals of Nepali origin residing abroad (excluding SAARC countries), granting socio-economic and cultural rights while excluding political privileges.

2. Non-Resident Nepali Association (NRNA): Established in 2003, the NRNA has evolved into a global network with representation in over 85 countries. It plays a pivotal role in organizing diaspora communities, promoting investment, and advocating for diaspora-friendly policies.

3. Welcoming Skilled Returnees: Initiatives such as the Reintegration Program Directives 2079 and the Brain Gain Centre aim to attract skilled professionals in technology, research, and entrepreneurship. These programs support resettlement, skill certification, and access to concessional loans for returnee entrepreneurs.

However, these efforts have yet to coalesce into a unified national vision. Weak inter- agency coordination, lack of operational guidelines, and limited political prioritization have undermined their long-term impact. The absence of a central diaspora coordination body and inconsistent implementation across federal, provincial, and local levels further complicate engagement. Looking ahead, Nepal must demonstrate strong political will and institutional commitment to develop a robust diaspora policy. This policy should: recognize the diaspora as strategic partners in national development, Ensure legal clarity and administrative efficiency,  Promote inclusive participation across sectors and generations, Align with global best practices in diaspora diplomacy and transnational collaboration.

Nepal’s diaspora is not merely a statistical presence it embodies a dynamic, enduring, and highly credible resource for national development. Rooted in a deep emotional bond with the homeland, diaspora communities hold vast reservoirs of global experience, professional expertise, capital, and networks that can significantly accelerate Nepal’s economic, social, and technological progress.
However, goodwill alone cannot unlock this transformative potential. What is required is a forward-looking, coherent, and actionable policy framework backed by unwavering political commitment and institutional readiness. The experiences of countries such as India, China, Israel, and Ireland clearly demonstrate that when a nation creates meaningful engagement platforms, extends legal and institutional support, and fosters mutual trust, its diaspora rises as a strategic partner in shaping
the country’s future.

Nepal now stands at a pivotal crossroads. It must move decisively beyond symbolic overtures and fragmented interventions. A bold and inclusive diaspora strategy one that prioritizes legal clarity, institutional coherence, and tangible pathways for participation is essential. Such a strategy should not only Honor emotional ties but also empower Nepalis abroad to contribute meaningfully to building a prosperous, resilient, and globally connected Nepal.

Baral is  former Principal of Gandaki Boarding School and Gandaki College of Engineering and Science, recognized as a educationist based in Pokhara who writes on education, technology, and ethics.