
The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.

Nepal’s trade deficit stayed above Rs. 109 billion in one month, despite higher exports, highlighting structural weaknesses in production and competitiveness. The deficit is being masked by remittance inflows, but sustainability remains in question.

Nepal’s foreign reserves jumped to Rs. 93.5 billion in one month, the strongest buffer in years, driven by remittance inflows and stable external flows, giving Nepal breathing space despite high trade deficits.

Nepal received Rs. 176 billion in remittances in a single month, a record figure that is sustaining the economy by offsetting the trade deficit and boosting reserves.

Nepal’s BoP surplus surged to Rs. 78 billion in mid-August 2025, largely due to strong remittance inflows and higher reserves, even as trade deficits remain high.

Although migration to Japan and Europe is rising, UAE, Qatar, Saudi Arabia, and Kuwait still dominate, employing more than 70% of Nepali workers in 2025/26 due to easier access, high demand, and historical patterns.

South Korea’s recruitment of Nepali workers fell by 67% in 2025/26, highlighting challenges in EPS quotas, skill barriers, and competition. This decline reduces access to one of the safest and best-paying labor markets for Nepalis.

In 2025/26, the Top 5 destinations for Nepali workers were UAE, Qatar, Saudi Arabia, Kuwait, and Malaysia, together employing over 75% of Nepal’s new migrant workforce.

In just one month of 2025/26, 44,466 Nepalis migrated abroad for work, with the UAE and Qatar leading as top destinations. The data underscores the country’s reliance on foreign jobs and remittances as a lifeline for the national economy.