With the rise in foreign employment, remittance inflows into Nepal have set a new record. Due to the lack of sufficient job opportunities within the country, a growing number of youths have gone abroad, pushing remittance inflows upward. Over the course of a year, Nepal received Rs 1.723 trillion in remittances.
According to Nepal Rastra Bank (NRB), remittance inflows increased by 19.2 percent in Fiscal Year 2081/82 BS. Former NRB Executive Director Dr. Nar Bahadur Thapa stressed that remittances should be properly utilized for national development. “Remittances must be channeled into development,” he said, adding, “it is concerning that the very youth needed for development are leaving the country.”
Thapa further cautioned that while remittances provide immediate benefits, they are neither sustainable nor long-lasting, urging the government to address the issue seriously.
In Ashadh 2082 alone, remittance inflows amounted to Rs 189.11 billion, compared to Rs 117.78 billion in the same month last year. During FY 2081/82, 839,266 Nepalis migrated abroad for employment. Among them, 505,957 obtained final labor permits (institutional and individual-new), while 333,309 received re-entry labor permits. In addition, many Nepalis traveled abroad on visit visas and stayed back, while students and professionals working overseas have also been contributing to remittance inflows.
In the previous FY 2080/81, 741,297 Nepalis had gone abroad for work. Rising remittance inflows also boosted foreign exchange reserves significantly. Compared to the last FY, Nepal’s total foreign exchange reserves increased by 31.2 percent, reaching Rs 2.677 trillion by the end of Ashadh 2082.
In US dollar terms, reserves increased from $15.27 billion in Ashadh 2081 to $19.50 billion in Ashadh 2082, a growth of 27.7 percent. Based on FY 2081/82 imports, the banking sector’s foreign exchange reserves are sufficient to cover 18.2 months of goods imports and 15.4 months of goods and services imports. Nepal also recorded a current account surplus of Rs 409.20 billion in FY 2081/82, up from Rs 221.71 billion in the previous FY.
Inflation Declines
Meanwhile, inflation in Nepal has slightly decreased compared to the previous fiscal year. According to NRB, the annual inflation rate at the end of FY 2081/82 stood at 4.06 percent, down from 5.44 percent in the preceding year. Annual point-to-point consumer inflation was recorded at 2.20 percent.
Compared to last FY, the prices of vegetables rose by 10.71 percent, ghee and oil by 8.72 percent, pulses and legumes by 7.90 percent, and food items overall by 6.13 percent.
Region-wise, inflation stood at 3.77 percent in the Kathmandu Valley, 4.14 percent in the Terai, 3.86 percent in the Hills, and 4.89 percent in the Himalayas, NRB data shows.
