Remittance: Nepal's Economic Pillar or Dependency Trap?
Summary
Remittance has become a major pillar of Nepal’s economy, supporting families, foreign exchange reserves, and external stability, but heavy dependence on it is raising concerns about productivity and job creation. The article argues Nepal must turn remittance income into productive investment rather than consumption.
Key Points
- Remittance inflow reached NPR 23 kharba 63 arba in fiscal year 2082/083, equal to about 35.8 percent of Nepal’s GDP.
- The money sent by Nepali workers abroad has boosted family income, poverty reduction, imports, and foreign exchange reserves.
- The article warns that excessive dependence on remittance weakens domestic production, job creation, and long-term economic resilience.
- It calls for policies that channel remittance into productive sectors such as agriculture, hydropower, tourism, technology, and entrepreneurship.
