Mobilise Remittances For Growth

Recent data show that remittance inflows in Nepal have increased substantially. Remittances are the money sent by our migrant workers to their families. With our increasing labour dependency, remittances have become a major source of household income, foreign exchange reserves, and several other developmental outcomes. In the last fiscal year alone, Nepal received Rs. 2.36 trillion in remittances. This is 35.8 per cent of the size of our GDP and a 37 per cent increase from the previous year. In the first two months of this fiscal year (Shrawan and Bhadra 2083) alone, Rs 436.36 billion has been received. Data reveal that during the 1993-2024 period, remittance inflow grew by nearly 19 per cent per year. It has exceeded the annual national budget. In this context, it is worthwhile to understand the causes and consequences of the growth in remittance inflows.