Expensive Calls, Hard Money Transfers: The Social Media Ban's Impact on Nepal's Economy

The social media ban by Nepal's government was not just a technical decision; it directly interfered with people’s lives. Many Nepalis working abroad stay connected with family through affordable apps like WhatsApp and send money this way. Phone calls are costly, and remittances make up 33% of Nepal's GDP, making this ban a blow to the lifelines supporting Nepal’s economy and society.
Nepal's Gen-Z Revolt: Why the Social Media Ban Stirred Fury. (Photo: PTI)

Source: aajtak

Why did Nepal's new generation protest so fiercely against the social media ban? The answer lies in the country's dependence on migration and remittances. The ban was a hit on two vital lifelines: affordable communication and money transfers, essential for countless families.

Costly Communication

According to Nepal Telecom, international call costs are prohibitively high. Calling India costs between 4 to 12 Nepali Rupees per minute, Saudi Arabia and Qatar up to 30 Rupees per minute, and calls to the U.S. or the UK range from 1.75 to 35 Rupees per minute.

India houses 11% of Nepal's overseas population, while Gulf countries have about 14%. North America and Europe account for 2.3% and 2.7% respectively.

Nepal's government social media ban was more than a technical decision; it was an intrusion into daily life. Millions of Nepalis abroad connect with family using affordable apps like WhatsApp, and send money through them. With costly phone calls and remittances forming 33% of Nepal's GDP, this ban was a blow to the economy and society.

Source: aajtak

In contrast, messaging apps like WhatsApp allow nearly free communication. Hence, the ban on platforms like YouTube, WhatsApp, and Facebook sparked widespread concern, although it has now been lifted. A resident of Biratnagar explained to India Today that his parents are in India for his mother's treatment, making the WhatsApp ban a major setback as it was the most affordable way to speak with them daily.

Similarly, many Nepalis said that social media is crucial not just for chatting but for financial transactions too, especially in a nation where remittance is the backbone of the economy. By January 2024, 48.1% of Nepal's total population was active on social media, and this figure rose to 73% for those aged over 18. Among internet users, 86% engaged with at least one social media platform.

Prolific Expatriate Community

Nepal's 2021 census showed the population with 7.5% as expatriates. In 1981, it was only 2.7%, escalating to 3.3% in 2001. India and Gulf countries remain favored destinations.

Migration is seen across all socio-economic classes. The census indicates that 45% of migrants had completed secondary education, 41.2% had basic education, only 5.3% held bachelor degrees, and a mere 1.9% had master's or higher degrees.

Nepal's government social media ban was more than a technical decision; it was an intrusion into daily life. Millions of Nepalis abroad connect with family using affordable apps like WhatsApp, and send money through them. With costly phone calls and remittances forming 33% of Nepal's GDP, this ban was a blow to the economy and society.

Source: aajtak

Due to expatriates, remittance counters in Nepal remain busy year-round. According to the World Bank, in 2024, remittances constituted over 33% of Nepal's GDP, compared to just 2% in 2000.

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