Mobilise Remittances For Growth
Summary
Nepal’s remittance inflows have surged to Rs. 2.36 trillion in the last fiscal year, equivalent to 35.8 percent of GDP, as labor migration and higher overseas wages continue to drive money transfers home. The article argues that remittances have reduced poverty and improved living standards, but also increased imports, inequality and long-term dependency.
Key Points
- Nepal received Rs. 2.36 trillion in remittances last fiscal year, with inflows continuing to rise sharply in the first two months of the current fiscal year.
- The growth is driven by domestic job shortages, overseas wage differences, expanded foreign labor demand, migration networks and easier digital transfer systems.
- Remittances have helped reduce poverty, improve household welfare and support external-sector stability, but they have also raised imports, trade deficits and dependence on foreign work.
- The article calls for policies that mobilize remittances into productive investment, human capital development and better migration governance.
