Utilising Remittances For Development

Nepal has been identified as one of the highest remittance recipient nations in the world. Remittance flows into low- and middle-income countries are on a continuous rise, a trend observed in Nepal as well. Remittances have become a major contributing factor to increasing household income as well as the country’s gross domestic product (GDP). More than 30 per cent of Nepal’s GDP comes in the form of remittance. It helps reduce poverty. Remittances annually amount to 20 per cent internally, 11 per cent from India, and 69 per cent from Gulf countries. Almost 79 per cent of remittance is used for meeting daily needs and the remaining for miscellaneous purposes.