Foreign Employment Bonds Stagnant at Rs. 330M: Are Nepali Migrants Losing Interest?

Nepal’s Foreign Employment Bonds (FEBs), introduced to channel remittances from migrant workers into productive investments, have once again failed to attract new participation. As per the latest data from Nepal Rastra Bank (NRB), the total outstanding amount of Foreign Employment Bonds remains stuck at Rs. 330 million as of mid-August 2025/26, showing no month-on-month growth. This stagnation underscores the persistent struggle to mobilize Nepal’s vast remittance inflows into formal investment instruments.

Although over Rs. 1.26 billion in remittances flow into Nepal every month, the contribution to bond programs such as the FEB remains negligible. Experts attribute this to a lack of awareness among migrant workers, complex investment procedures, limited availability of digital purchase platforms, and weak returns compared to other savings options. Additionally, trust issues and bureaucratic hurdles in accessing interest payments and redemption have discouraged potential buyers.

The Foreign Employment Bond scheme was designed to give Nepali migrants an opportunity to invest safely in government-backed securities, helping the government raise internal financing while giving migrants stable returns. However, the low subscription rate indicates that the scheme has failed to resonate with the diaspora, who prefer informal savings channels or real estate investments in Nepal.

Economists suggest revamping the program through online subscription portals, diaspora-targeted marketing, and tax incentives to make it more appealing. Unless reforms are introduced, the FEB is likely to remain symbolic, not substantial, in Nepal’s fiscal landscape.