West Asia Conflict and the Skills Agenda in Nepal

Initial vocational education and training, Labour market insertion
30.04.2026
Each year, nearly 700,000 Nepalese leave the country in search of foreign employment, with around 65 percent, approximately 450,000 individuals heading to Gulf countries. These migrants are vital to Nepal’s economy, contributing 22–25 percent to Nepal’s GDP, with nearly 40 percent of total remittance inflows originating from West Asian countries (Banjade, 2026) (Adhikari, 2024).  These figures underscore the centrality of migrant labour to Nepal’s foreign currency reserves and overall economic stability.

The ongoing conflict in West Asia poses significant risks compelling many migrants to return home. This shift could have profound consequences for Nepal’s remittance earnings and labour market.

Nepal can consider this situation as a unique opportunity to harness the skills, discipline, and work culture that returnee migrants have acquired abroad. Rather than viewing their return as a challenge, the country can position this as a chance to strengthen its domestic labour market and entrepreneurial ecosystem.  This moment calls for a strategic repositioning of the TVET system, moving away from a supply-driven model toward one that actively absorbs shocks, leverages global experiences, and builds resilience in Nepal’s workforce.

Such opportunities can be categorised into two areas: (i) providing support to returnee migrant workers, and (ii) addressing the need for the strategic repositioning of the Technical and Vocational Education and Training (TVET) system.

i) Providing support to returnee migrant workers:

As Nepal’s TVET system already has elements designed to support returnee migrants, several measures can support this transition. Such as:

  • Recognition of Prior Learning (RPL) is crucial for formally recognising the skills returnees already have. It helps build their confidence and create opportunities for better jobs, career progression, or starting a business. To make it easier and more accessible, the application process is available online.
  • Upskilling and enterprising support programmes can align returnees’ skills with domestic industry needs, while entrepreneurship, digital literacy, and business development training can prepare them for self-employment. They may require structured support links with financial intermediaries to access credit and startup support.
  • Facilitation for re-entry into Nepal’s labour market is essential. Consultations with several private sector partners reveal persistent shortages of skilled workers. Employers see strong potential in returnee migrants to fill the gaps. Employer-led agreements to hire certified returnees will boost the RPL process and help industries hire skilled workers.

 

ii) Addressing the need for strategic repositioning of the TVET system.

The return of migrant workers has significant implications for Nepal’s TVET system, demanding a strategic repositioning of the system itself. Repositioning TVET with a focus on relevance, scale, and responsiveness is urgent.

In terms of relevance, curricula must evolve to integrate international work practices and competencies acquired abroad, ensuring that the skills returnees bring home are recognised and aligned with domestic industry needs.

In terms of scale, the system must expand its capacity to deliver RPL, bridge courses, and entrepreneurship training to match returnee’s expectations. This requires institutional strengthening, resource mobilisation, and partnerships with private sector actors to deliver programmes on a scale without compromising quality.

In terms of responsiveness, TVET institutions must become agile, designing short-term, modular programmes that can quickly adapt to labour market shifts and crises.

Swisscontact’s efforts in Nepal’s TVET landscape

Swisscontact has leveraged its expertise in strengthening Nepal’s TVET system through the Nepal Vocational Qualifications System project (NVQS-P). NVQS-P has strengthened systems for RPL. These systems provide a ready platform for certifying returnee migrants and facilitating their transition into domestic employment or entrepreneurship. Swisscontact can also support the development of higher-level courses across sectors, opening pathways for returnee migrants of diverse backgrounds to transform into a productive workforce.

One key achievement has been the formation and operationalization of Sector Skill Committees (SSCs). These committees bring together industry actors to define occupational standards, identify skill needs, and guide the development of competency-based qualifications. By institutionalizing employer engagement, SSCs ensure that training and certification systems are aligned with real market demand.

To date, SSCs have been established across nine sectors: Hospitality, Construction, Automobile, Agriculture, ICT, Manufacturing, Wellness, Handicraft & Jewellery, and Furniture & Furnishing. Each committee has developed their respective occupational sectoral map/s, outlining job roles across National Vocational Qualifications (NVQ) Levels 1 to 5. These maps provide a structured framework for translating industry requirements into competency standards, curricula, and assessment systems.

While full integration of these frameworks into the national qualifications system may face constraints due to existing legal provisions, they can offer practical guidance for federal, provincial, and local governments in designing skills and employment programmes. By leveraging SSC-developed occupational standards, governments can design targeted upskilling and reskilling initiatives as well as align investments with sector-specific demand.

Further, Swisscontact can support youth and returnee migrants by promoting enterprises and self-employment through improved access to concessional finance, business development services, practice enterprises platform and incubation services for returnee-led Small and Medium Enterprises (SMEs). At the same time, Swisscontact can strengthen job-matching systems that connect returnees with industries facing skill shortages, thereby facilitating their integration into the local economy. Additionally, by leveraging existing TVET networks, Swisscontact can link returnees with local governments to engage in infrastructure projects and community-level enterprise development, creating sustainable opportunities for reintegration and growth.

Swisscontact was instrumental in developing a digital portal, Shramsansar which is now handed over to the Ministry of Labour Employment and Social Security (MoLESS). MoLESS has released a circular making it mandatory for government offices to insert employment and services related information in this portal.

Moreover, with its experience in institutional development, accreditation, and quality assurance, Swisscontact is well positioned to contribute towards sustainable partnerships between institutions and industries, ensuring continuous recognition of youth skills and competencies while facilitating their enrollment and progression within the TVET ecosystem.

Sources

  • Remittances. Retrieved from London School of Economics: https://blogs.lse.ac.uk/southasia/2024/05/13/exporting-talent-importing-cash-nepal-youth-migration-and-remittances/
  • Banjade, Y. (2026, March 31). West Asia conflict puts Nepal’s remittance inflows at risk, raises economic concerns. Retrieved from The Kathmandu Post: https://kathmandupost.com/money/2026/03/31/west-asia-conflict-puts-nepal-s-remittance-inflows-at-risk-raises-economic-concerns
  • Lanzafame, M., Galimberti, J. K., Ciminelli, G., & Beirne, J. (2026, March). Asian Development Bank. Retrieved from ADB Briefs No. 384: https://www.adb.org/sites/default/files/publication/1135236/adb-brief-384-conflict-middle-east-macroeconomic-risks.pdf
2020 - 2026
Nepal
Initial vocational education and training
Nepal Vocational Qualifications System (NVQS)
Youths entering the labour market in Nepal are compelled to remain unemployed or underemployed and work in low-pay jobs due to a lack of skills, and lack of certification and recognition of the skills they have. To provide wider opportunities and to enable Nepali youth without formal vocational training and education, and those who have gained skills through work experience to enter the labour market with recognized certificates for better employability and career path, the Government of Nepal (GoN) has initiated a National Vocational Qualifications System (NVQS) with the National Qualifications Framework (NQF) to be implemented.
Nepal
Initial vocational education and training
Quality Technical and Vocational Education and Training for youth (QualiTY)
Quality Technical and Vocational Education and Training (TVET) for Youth (QualiTY) Project aims to help Nepali youth, including those from disadvantaged groups, benefit from quality education and better employment prospects.