Nepali Remittance Inflow Witnesses Significant Growth, Boosting Local Businesses and Nepali Market
In a positive development for Nepal’s economy, the remittance inflow from Nepali workers abroad has surged by an impressive 21% in the first eight months of the current fiscal year. According to the latest report titled ‘Current Macroeconomic and Financial Situation of Nepal’ published by Nepal Rastra Bank (NRB), the remittance inflow reached a staggering Rs 961.22 billion by the month of Falgun.
The substantial increase in remittance inflow is a welcome boost for the Nepali market and local businesses, as it provides much-needed financial support and investment opportunities. This influx of funds is expected to drive economic growth, stimulate entrepreneurship, and create new job opportunities across various sectors.
Compared to the same period in the previous fiscal year, the remittance inflow witnessed a remarkable 25.3% increase, highlighting the growing contribution of Nepali workers abroad to the nation’s economy. In US dollar terms, the remittance inflows rose by 18.8% to $7.24 billion during the review period, outpacing the 14.8% growth recorded in the same period last year.
The surge in remittance inflow can be attributed to the increasing number of Nepali workers seeking employment opportunities abroad. According to the NRB report, a total of 286,932 Nepali workers (institutional and individual-new) obtained approval for foreign employment during the review period. Additionally, 184,278 Nepali workers renewed their entry for foreign employment, further contributing to the remittance inflow.
The influx of remittances has also positively impacted the net transfer figures, which increased by 18.9% to Rs 1041.96 billion in the review period. This growth is significant compared to the 23.9% increase recorded during the same period in the previous year.
The remittance inflow has become a crucial source of income for many Nepali families, providing financial stability and enabling investments in education, healthcare, and small businesses. It has also played a vital role in supporting the country’s balance of payments and contributing to the overall economic development.
As the Nepali market continues to expand and new business opportunities emerge, the increased remittance inflow is expected to fuel further growth and investment, particularly in sectors such as real estate, construction, and consumer goods. Additionally, the influx of funds could potentially attract more investors and entrepreneurs to explore the Nepali market, fostering innovation and driving the growth of startups and small businesses.
However, it is essential for the government and relevant authorities to implement effective policies and regulations to ensure the efficient management and utilization of remittance funds. Measures should be taken to facilitate smoother transfer processes, enhance financial literacy, and create an enabling environment for investment and entrepreneurship.
As Nepal’s economy continues to recover from the impact of the COVID-19 pandemic, the surge in remittance inflow provides a much-needed boost, offering hope and opportunities for local businesses, entrepreneurs, and the overall development of the Nepali market.
