Nepal targets new bilateral labour deals with Australia, Austria, Malta and More

KATHMANDU — The Government of Nepal has accelerated efforts to expand its global labor market access, announcing plans to sign bilateral labor agreements (BLAs) with at least five countries within the next year, in a move aimed at strengthening foreign employment opportunities and safeguarding migrant workers.

According to the Ministry of Labour, Employment and Social Security, the process has already been initiated following directives from newly appointed Labour Minister Dipak Kumar Sah. The minister has instructed officials to fast-track negotiations and finalize agreements within a one-year timeframe.

Push for New Labour Destinations

The ministry has formally approached 16 countries for bilateral labor agreements, sending draft proposals and requesting cooperation. However, officials say that responses from these countries are still pending.

Minister Sah has directed authorities to actively follow up through diplomatic channels, with coordination now underway via the Ministry of Foreign Affairs Nepal to engage concerned countries and push negotiations forward.

Countries under priority for agreement include:

• Austria
• Malta
• Australia
• Kuwait

Europe and Asia Outreach Expands

Nepal’s outreach began on Chaitra 5, 2081 (mid-March 2025), when proposals were sent to 13 European and other countries, including:

• Albania
• Austria
• Turkey
• Malta
• Maldives
• Serbia
• Cyprus
• Luxembourg
• Brunei
• Poland
• Bosnia and Herzegovina
• Croatia
• Belgium

Later, on Bhadra 16, 2082 (early September 2025), Nepal extended proposals to Vietnam, Australia, and Thailand for BLAs.

Existing Agreements and Renewals

Nepal currently maintains bilateral labor agreements with 13 countries. The most recent agreement was signed with Saudi Arabia on Magh 12, 2082 (late January 2026).

Other countries with existing agreements include:

• Qatar
• South Korea
• Bahrain
• Jordan
• Malaysia
• United Arab Emirates (UAE)
• Japan
• Mauritius
• Israel
• United Kingdom
• Romania
• Germany

In parallel, the government is also working to renew existing agreements with countries such as Israel, Malaysia, and Oman. Proposals for renewal with Israel and Oman have already received cabinet approval.

Importance for Nepal’s Economy

The expansion of bilateral labor agreements is critical for Nepal’s remittance-driven economy. Foreign employment remains a key pillar, contributing significantly to:

• Household income
• Foreign exchange reserves
• Poverty reduction

By formalizing labor agreements, the government aims to:

• Ensure better wages and working conditions for Nepali workers
• Reduce exploitation and informal recruitment practices
• Diversify labor destinations beyond traditional Gulf markets

Challenges Ahead

Despite proactive outreach, the lack of response from partner countries highlights challenges in negotiation, including:

• Compliance with international labor standards
• Competition from other labor-sending countries
• Regulatory and immigration policy barriers in destination countries

Officials say sustained diplomatic engagement and policy alignment will be crucial to securing agreements within the targeted timeline.

The government’s one-year target reflects a broader strategy to reposition Nepal in the global labor market while strengthening protections for its migrant workforce.