Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Remittance inflows to Nepal recorded a strong growth during the first seven months of the fiscal year 2025/26 (FY2082/83), highlighting the continued importance of migrant earnings to the country’s macroeconomic stability.
According to the latest report on the Current Macroeconomic and Financial Situation released by Nepal Rastra Bank, remittance inflows increased 39.8 percent to Rs1,261.01 billion during the review period, compared to a 7.5 percent growth in the same period of the previous fiscal year.
During the one-month period from mid-January to mid-February (Magh) alone, remittances worth Rs198.08 billion entered the country. In the corresponding month of the previous year, remittance inflows stood at Rs137.50 billion, showing a significant rise in foreign earnings sent by Nepali migrant workers.
In US dollar terms, remittance inflows also recorded a strong increase, rising 33 percent to $8.86 billion in the review period. In the same period last year, remittances had increased by only 5.5 percent, reflecting a sharp acceleration in foreign income transfers.
The report also shows that net secondary income (net transfer)—which largely consists of remittances—reached Rs1,384.27 billion during the review period, compared to Rs986.34 billion in the same period of the previous fiscal year.
Meanwhile, labor migration trends remain strong. Data show that 245,153 Nepali workers obtained first-time approvals for foreign employment, while 227,424 workers renewed their labor permits during the first seven months of the fiscal year.
In the same period of the previous year, 274,662 workers had received first-time approvals, while 190,886 workers had renewed their foreign employment permits, indicating a slight decline in new labor migration but a rise in re-entry approvals.
Economists say the sharp rise in remittance inflows continues to play a crucial role in supporting Nepal’s foreign exchange reserves, balance of payments, household consumption, and overall economic stability, even as the country remains heavily dependent on overseas labor income.
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