UPSC Prelims Practice Questions — Remittance-dependent Nepal ‘addicted’ to the trade in its own citizens abroad

Q1. As per recent World Bank (2025) assessments, personal remittances received by Nepal as a share of its GDP have been closest to which one of the following?

  • A. About 5 percent
  • B. About 15 percent
  • C. More than 25 percent
  • D. More than 60 percent

Q2. With reference to the institutional framework governing foreign employment of Nepali workers, consider the following statements: 1. The Foreign Employment Act, 2007 is the principal statute regulating overseas labour migration from Nepal. 2. The Foreign Employment Board functions under Nepal's Ministry of Labour, Employment and Social Security. 3. The Department of Foreign Employment maintains the Foreign Employment Information Management System (FEIMS). 4. Remittance inflows to Nepal are regulated by Nepal Rastra Bank's Foreign Employment Welfare Fund. Which of the statements given above are correct?

  1. The Foreign Employment Act, 2007 is the principal statute regulating overseas labour migration from Nepal.
  2. The Foreign Employment Board functions under Nepal's Ministry of Labour, Employment and Social Security.
  3. The Department of Foreign Employment maintains the Foreign Employment Information Management System (FEIMS).
  4. Remittance inflows to Nepal are regulated by Nepal Rastra Bank's Foreign Employment Welfare Fund.
  • A. 1, 2 and 3 only
  • B. 1, 3 and 4 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q3. In the context of Nepal's labour migration governance, the 'Foreign Employment Information Management System (FEIMS)' refers to which one of the following?

  • A. A bilateral data-sharing platform between Nepal and GCC states to track wage protection of migrant workers
  • B. The administrative database of the Department of Foreign Employment that records labour approvals and migration data of Nepali workers going abroad
  • C. A World Bank-funded remittance corridor monitoring tool operated by Nepal Rastra Bank
  • D. An ILO-managed regional registry of recruitment agencies operating across South Asia

Q4. In Nepal, the Foreign Employment Board — the apex body for welfare of overseas Nepali workers — functions under which one of the following ministries?

  • A. Ministry of Foreign Affairs
  • B. Ministry of Home Affairs
  • C. Ministry of Labour, Employment and Social Security
  • D. Ministry of Federal Affairs and General Administration

Q5. The Foreign Employment Board of Nepal — which administers welfare measures, contributory welfare fund and repatriation of overseas workers — derives its statutory basis from which one of the following?

  • A. Labour Act, 2017
  • B. Foreign Employment Act, 2007
  • C. Social Security Act, 2018
  • D. Industrial Enterprises Act, 2020