Remittances to Nepal Surge by 21% in Fiscal Year 2023/24’s First Eight Months

Remittance inflow to Nepal has witnessed a significant upswing, marking a notable 21% increase to Rs 961.22 billion during the initial eight months of the fiscal year 2023/24. This data, unveiled in the Nepal Rastra Bank’s Macroeconomic Situation Report for the aforementioned period, reflects a robust economic trend compared to the 25.3% growth recorded in the corresponding period of the preceding fiscal year.

In US dollar terms, remittance inflows soared by 18.8%, totaling 7.24 billion during the review period. This indicates a notable acceleration compared to the 14.8% rise observed in the same timeframe of the prior year.

Despite the remarkable surge in remittances, there was a slight dip in the number of Nepali workers migrating to foreign job destinations during the same period. According to the NRB, 286,932 Nepali workers secured first-time approval for foreign employment, while 184,278 individuals received approval for re-entry during the eight-month span. In contrast, the previous fiscal year witnessed 351,761 individuals obtaining approval for first-time employment and 192,559 for re-entry during the same duration.

The report also highlights a notable increase of 18.9% in net transfers, reaching Rs 1,041.96 billion during the review period. However, this growth rate is marginally lower than the 23.9% surge witnessed in the corresponding period of the preceding fiscal year.

The surge in remittances coupled with slight fluctuations in the number of workers seeking foreign employment underscores the evolving dynamics of Nepal’s economy amidst global economic shifts and labor market trends.