Kathmandu, July 14: Remittance inflows to Nepal climbed to a new high in the first 11 months of the current fiscal year, underlining the country’s continued dependence on income sent home by migrant workers. According to the Nepal Rastra Bank (NRB), remittances rose by 38.2 per cent year-on-year to Rs 2.1208 trillion by mid-June.
The figures, released in the central bank’s latest Current Macroeconomic and Financial Situation of Nepal report on Monday, show that remittances remain the largest source of foreign exchange earnings and a key pillar supporting the country’s external sector. The steady inflow has helped strengthen foreign exchange reserves, improve liquidity and support the balance of payments at a time when exports remain weak.
In the month of Jestha, from mid-May to mid-June, Nepal received Rs 203.89 billion in remittances, compared to Rs 176.32 billion during the same period of the previous fiscal year. The sustained growth reflects both the rising number of Nepalis leaving for foreign employment and higher earnings from major labour destination countries.
The NRB report also shows that net secondary income, which largely consists of remittances and other transfers, increased sharply to Rs 2.321 trillion during the review period from Rs 1.6695 trillion a year earlier.
The number of Nepalis seeking overseas jobs also remained high. During the first 11 months of the fiscal year, 367,211 individuals received new final labour approvals for foreign employment through institutional and individual channels. In addition, 355,735 migrant workers renewed their labour permits, indicating that many chose to extend their employment abroad.
Economists say strong remittance growth has supported household spending, banking sector deposits and the country’s external stability. At the same time, they warn that Nepal’s growing reliance on labour migration exposes the economy to external shocks and highlights the need to create more employment opportunities at home.
Remittances account for nearly one-fourth of Nepal’s gross domestic product and play a critical role in supporting millions of households by financing daily expenses, education, healthcare and housing. Despite their positive contribution, experts continue to stress that the country must channel more of these inflows into productive sectors to generate sustainable economic growth.
People’s News Monitoring Service
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