Remittances hit all-time high as Nepalis send Rs4.72 billion daily
Summary
Nepalis working abroad sent Rs4.72 billion daily in remittances last fiscal year, totaling Rs1.72 trillion, nearly matching Nepal's government budget, driven by increased migration and favorable currency rates.
Key Points
- Nepalis sent Rs4.72 billion daily in remittances in the last fiscal year, totaling Rs1.72 trillion, a 19% increase year-on-year.
- Over 839,000 Nepalis left or renewed permits for foreign employment last year, with increasing migration to Western countries beyond traditional Middle Eastern destinations.
- Use of formal money transfer channels has risen as stricter regulations curb informal hundi transactions.
- Despite high remittance inflow, most money is used for household consumption, contributing little to savings or business investments, leaving Nepal's economy sluggish with slow growth of 4.61%.
