"The impact of the war in Iran on migrant workers in Nepal", 3 June 2026

… Migration should be a choice, not a necessity. For Nepal, it is exactly the opposite. Without the opportunity to work abroad — mostly in the Gulf states — Nepal’s economy would be missing between 8 to 25 percent of its GDP (depending on the sources consulted). Nepal receives on average the equivalent of about 850 million Euro in remittances each month, of which about 40 percent—the equivalent of approximately 345 million Euro — is being transferred to Nepal from the Gulf states...

Being so dependent on remittances poses a huge problem as soon as this system is disrupted by external conflicts – like the ongoing war in Iran. As a result of this current war, there are disruptions in the supply chain for food and other consumer goods, domestic and international travel is affected, and consumers suffer from the negative impacts on their daily lives... Nepal relies on the Gulf states not only as a source of labour (around 80,000 Nepalis are at risk of losing the job in Saudi Arabia following the suspension of the ambitious ‘Future City’ Project) but also for key imports, including raw materials, fertilizers, and construction materials. The war is already affecting industrial production in Nepal and poses a risk to food security as well.

Even more crucial, however, is that this has a massive impact on the women and families who depend on the money sent to them by relatives working abroad…

The remittances have also increased Nepal’s consumer market and therefore the size of Nepal’s middle class. But remittances do not have a sustainable future at a time when world politics is facing multiple crisis…

… Many migrant workers who have been working particularly in the gulf states are returning back and those who are still there are also not really getting employment or some form of protection…