
Across the globe, countries such as Serbia, Macedonia, Brazil, Egypt, Nigeria, South Africa, Pakistan and others grapple with the loss of talented and skilled individuals to jobs abroad. This ‘brain drain’ – where top talent leaves their home country for better pay, education, career opportunities, quality of life, and due to political conditions – significantly impacts the productivity, business strength and long-term economic outlook of the home country.
Nepal faces this issue similarly to its neighbours in Pakistan and India, but the situation may be more critical given Nepal’s relatively smaller population. According to Nepal government statistics in 2022, 82,409 No Objection Certificates (NOCs) were issued in just six months for students pursuing higher education abroad. Additionally, Napaldatabase.com estimates that nearly 2,000 young people leave Nepal daily for work or study opportunities overseas. This crisis also affects mid-level professionals and managers, who play a vital role running businesses and mentoring others.
This issue in Nepal is deeply rooted in challenges such as unfavourable economic conditions, limited career opportunities, social and familial pressures, established Nepali communities abroad, and inefficient governance. However, steps can be taken over time to create a stronger and more impactful business environment in Nepal.
Strengthening the Business Infrastructure
One starting point is government action to shape and support the business infrastructure broadly while implementing specific programmes to nurture top talent. A strong foundation begins with education. Greater emphasis on English language instruction in schools and integrating advanced tools like the internet, artificial intelligence (AI), and online learning platforms can prepare students for global opportunities.
The world is rapidly adapting to AI, and individuals skilled in its use will be in high demand. Within five years, it’s likely that many companies will adopt generative AI not only enhancing jobs but replacing some of them. Developing expertise in AI technologies will enable Nepalis to work for global companies while remaining in Nepal.
Nepal has the potential to become an AI hub, similar to how India has excelled in customer service outsourcing. However, achieving this requires long-term dedication to improving education, internet infrastructure, cloud servers, data centres and wireless connectivity. Partnerships with industry leaders like Microsoft, Google and Amazon are essential. A successful example to emulate is Dubai, which opened its Internet City in 2000 with 100 technology companies. By 2020, it had grown to house over 1,600 companies.
Nepal’s geography also offers unique advantages. Data centres could thrive in areas with moderate climates, reducing cooling costs. Strategically placed data centres with a reliable power grid and minimal flood risks could serve the heavy data traffic from neighbouring countries like India and China, while also backing up global data during peak usage.
Government-Business Collaboration
From my experience in Nepal, I’ve observed that business leaders are frustrated with government inefficiencies and corruption. Bureaucracy, nepotism and bribery create barriers for business. In November 2020, Transparency International reported that 84% of Nepalis saw government corruption as a significant issue, with 43% perceiving members of parliament as corrupt. Recent efforts, such as the move to disband politically affiliated trade unions in civil service, represent progress. However, much more needs to be done to create a transparent, fair and efficient government that enables businesses to thrive.
Engaging Students Abroad
The government must foster stronger relationships with Nepali students studying abroad, particularly those in graduate programmes. These efforts could include connecting students with businesses in Nepal which offer practical work experience and established mentorship programmes with Nepali industry leaders.
Upon graduation, these students should be encouraged to return to Nepal through structured two-year job rotation programmes. These programmes could provide exposure to various sectors – hospitality, finance, manufacturing, retail, banking and services – based on their education and interests. Similar opportunities should also be extended to top-performing graduates from Nepali universities.
For entrepreneurial graduates, the government could offer expert management consulting advice and funding support for start-ups. Collaboration with Indian venture capitalists for instance, could further bolster start-up funding and idea generation.
Retaining Mid-Career Professionals
Mid-career professionals, typically aged 35–50, are crucial to the success of any business. They bring expertise, ambition and a strong network while often holding leadership positions or running their own ventures. Unfortunately, many are now leaving Nepal, creating succession planning challenges for businesses.
Retaining these professionals requires deliberate efforts:
- Foster Inclusive Management Cultures: Encourage teamwork, interdepartmental collaboration and merit-based advancement while rejecting nepotism.
- Conduct Leadership Assessments: Identify individuals with high leadership potential and provide clear pathways for growth.
- Hold Retention Discussions: Understand employees’ career aspirations and help them align their strengths with long-term company goals.
- Promote Transparency: Share financial information and company strategies with high-potential employees to develop their understanding of broader business management.
Preparing for the Future
The global demand for skilled workers will only grow as declining birth rates reduce the working-age population in many countries. Nations like Serbia and Japan are projected to see their populations shrink by approximately 25% by 2050. This will increase the demand – and competition – for top talent worldwide. While advancements in AI may offset some labour shortages, employment gaps will remain.
Nepal must act now to secure its future. By investing in technology and AI infrastructure, improving government efficiency, and retaining young and mid-career professionals, Nepal can position itself for long-term success. These efforts will ensure that Nepal thrives, rather than merely survives, in the years to come.