Nepal’s Remittance-driven Paradox
Summary
Nepal’s remittance inflows reached about Rs. 2.36 trillion in fiscal year 2025/26, equal to 35.8 per cent of GDP, underscoring the country’s heavy dependence on migrant earnings abroad. The article argues that remittances ease poverty but cannot substitute for job creation, productivity, and investment at home.
Key Points
- Nepal Rastra Bank reported remittance inflows of about Rs. 2.36 trillion in fiscal year 2025/26, equal to 35.8 per cent of GDP.
- The article says remittances support families and foreign exchange but do not build enough productive jobs or structural change inside Nepal.
- It warns that Nepal’s reliance on overseas labour markets is risky because policy changes abroad can quickly reduce opportunities for migrant workers.
- The piece urges the government to channel diaspora wealth into business, tourism, manufacturing, agriculture, and other productive sectors through better investment channels and support for returnees.
