Private Sector IOM
The International Organization for Migration (IOM) implemented a pilot project titled “Private Sector Participation in Labour Migration Management in Nepal” which aimed to contribute to the Government of Nepal’s initiatives to generate employment opportunities and an enabling environment for safer migration through public private partnerships in Migration management. Under the project IOM and its implementing partner, POURAKHI Nepal agreed with the objective of providing financial literacy training to 100 remittance receiving household in Jagatapur and Sukranagar VDCs of Chitwan. The objective of the project was to improve participant’s financial literacy including saving, investment, household budgeting and financial management skills and the ability to make appropriate decisions in managing family/personal finances. A large proportion of remittances received from migrant workers has been used for consumer goods and household expenses in Nepal. However, most remittance recipient households lack basic financial literacy and have very limited knowledge about the proper use of remittances in productive fields or potential areas for remittance investment. Often, remittances are spent by families on consumer goods, rather than being invested into income generating activities and productive investment of remittance. Consequently, migrants who have moved abroad at considerable cost end up stuck in a vicious cycle of poverty, debt and re-migration.