Steady Rise in Remittance Bolsters Nepal's Foreign Earnings

Kathmandu, July 8 – Nepal has witnessed a consistent and robust rise in workers' remittances over the past six fiscal years, indicating strong support from the migrant workforce and improving remittance channels. According to the data published by Nepal Rastra Bank, total workers’ remittances have surged from Rs. 875 billion in the fiscal year 2019/20 to a provisional record of Rs. 1,532.9 billion by mid-June of the fiscal year 2024/25.

During the pandemic-hit 2019/20, Nepal received Rs. 875 billion in remittances, which gradually climbed to Rs. 961.1 billion in 2020/21 and Rs. 1,007.3 billion in 2021/22. The remittance flow saw a substantial boost in 2022/23, reaching Rs. 1,240.7 billion annually, reflecting the reopening of labor destinations and increasing outflow of migrant workers.

The fiscal year 2023/24 marked a remarkable increase, with annual remittances hitting Rs. 1,445.3 billion. However, by mid-June of the same year, remittance inflow stood at Rs. 1,327.5 billion, suggesting the momentum was sustained well through the year.

Most notably, by mid-June of 2024/25, workers' remittances surged to Rs. 1,532.9 billion — the highest ever recorded — highlighting an upward trajectory in foreign income and supporting Nepal’s balance of payments and foreign exchange reserves.

This consistent growth in remittances plays a pivotal role in stabilizing Nepal’s economy, reducing current account deficits, and increasing household consumption. Experts credit the trend to a combination of factors including formalization of transfer channels, increase in labor migration to Gulf countries and Malaysia, and improved digital banking infrastructure.

As the government looks to harness remittance earnings for productive investments, policy reforms and incentives for returnee migrants could further strengthen the impact of this critical economic pillar.