Nepal, Saudi Arabia reach labour recruitment deal

Kathmandu, June 10

Nepal and Saudi Arabia have reached a significant agreement regarding the recruitment of Nepali workers.

This breakthrough came during a bilateral meeting between Nepal's Minister for Labour, Employment, and Social Security, Sharat Singh Bhandari, and Saudi Arabia's Deputy Minister for International Affairs, Tariq Al-Hamad, held in Geneva on Monday.

The meeting was held at the sidelines of 113^th International Labour Conference, organised by the International Labour Organization (ILO) in Geneva. Minister Bhandari is leading Nepali delegation to the Conference.

According to Minister Bhandari's secretariat, he said that Saudi Arabia is prepared to immediately sign two agreements: one for general and skilled workers, and another concerning a skill verification programme, setting aside the agreement for domestic workers for now.

Nepal has already agreed to the draft of the general labour agreement with Saudi Arabia, read a statement from the Minister's secretariat.

"An agreement on recruiting general workers with Saudi Arabia was reached previously; only the signing remains," Minister bhandari said.

According to him, Saudi Arabia had insisted that the general agreement could only be signed after the domestic worker agreement was in place. However, this recent meeting has decided to proceed with the already agreed-upon general agreement and to do further homework on the draft of the domestic worker agreement.

He informed the Saudi delegation about the Nepali parliamentary committee's directive, which mandates that the domestic worker agreement should only be signed after the main labour agreement between the two countries. He also conveyed that a pilot project would be necessary for this.

Likewise, Minister Bhandari highlighted that the Geneva meeting has paved the way for signing the general labour agreement and the skill verification programme with Saudi Arabia.

Nepal has formally sent its agreement to the draft of the general agreement provided by Saudi Arabia through the Ministry of Foreign Affairs. This draft incorporates workers' rights, occupational health and safety, employer changes, and fair recruitment practices, all in accordance with International Labour Organisation standards.

Meanwhile, Minister Bhandari held bilateral meetings with International Organization for Migration Director General Amy Pope, and Head of the Labour Directorate at the Swiss State Secretariat for Economic Affairs (SECO) Jérôme Cosandy on Tuesday.

The Permanent Mission of Nepal to the United Nations in Geneva said in a statement that the Minister shared the vision for creating, managing and regulating decent jobs within Nepal in the Decade of Internal Employment Promotion 2025-2035. HE called for the collective action towards promoting human-centric employment.

 

FNCCI President holds talks

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President, Chandra Prasad Dhakal, discussed investment expansion and market access for smaller economies like Nepal, especially in the evolving economic landscape with various stakeholders at the sidelines of the conference.

He met with Roberto Suárez Santos, Secretary-General of the International Organisation of Employers (IOE), and Zhang Xiangchen, Deputy Director-General of the World Trade Organization (WTO).

In the meetings with them, Dhakal shared his perspectives on investment opportunities within Nepal, potential collaborations with both organisations, and Nepal's expectations, the FNCCI informed in a statement.

He highlighted the urgent need for investment to overcome Nepal's development challenges. He expressed the view that strengthening engagement with international partners and facilitating the exchange of best practices could significantly benefit Nepal.

Likewise, Dhakal urged Secretary-General Santos to help disseminate the message globally that Nepal offers significant investment opportunities in sectors like tourism, hydropower, and information and communication technology.

Similarly, in the meeting with Xiangchen, Dhakal welcomed the WTO's decision to maintain duty-free and quota-free access for Nepal during the interim period, in light of its process to graduate from the Least Developed Country (LDC) category by 2026.

However, he specifically requested the WTO to provide technical assistance, technology, knowledge, and resources to enable Nepal to meet international standards. He also asked for flexibility in implementing treaties.

Published in The Rising Nepal daily on 11 June 2025.