Remittance Inflow Nepal 2026: Eight-Month Performance Analysis
Nepal's remittance inflows have surged dramatically in fiscal year 2025/26. According to the Nepal Rastra Bank (NRB) Balance of Payments data, workers' remittances reached Rs. 1,449,652.62 million (~$10,148.77 million) in the first eight months — a year-on-year increase of +37.67% in rupee terms and +31.02% in USD terms.
Remittance Performance (8M Comparison)
| Period | Workers Remittances (Rs. M) | Workers Remittances (USD M) |
|---|---|---|
| 8M 2023/24 | 961,252.79 | — |
| 8M 2024/25 | 1,052,999.58 | 7,745.79 |
| 8M 2025/26 | 1,449,652.62 | 10,148.77 |
| YoY Change | +37.67% | +31.02% |
Why Are Remittances Surging Despite Fewer New Migrants?
New labor permits fell 13.73% yet remittances jumped 37.67% — a paradox explained by:
- Higher wages in Gulf states for skilled workers
- Weaker NPR — each USD remitted converts to more rupees
- Large existing diaspora of 3M+ workers sending more per person
- Channel formalization — more flowing through official banking
- Renewal permits +15.91% — growing pool of experienced, higher-earning workers staying abroad
Remittances as Nepal's Economic Lifeline
- Trade deficit (8M): Rs. 1,098,138.20M
- Workers' remittances (8M): Rs. 1,449,652.62M
- Remittances exceed the trade deficit by Rs. 351,514M
- Current account surplus: Rs. 552,847.68M (~$3.875B)
Top Labor-Sending Countries (New Permits, 8M 2025/26)
- UAE: 70,706 (25.85% share, -43.34%)
- Saudi Arabia: 39,922 (14.59%, -22.37%)
- Malaysia: 29,955 — surged from just 1,076 in 2024/25
- Qatar: 29,439 (10.76%, -11.76%)
- Kuwait: 21,473 (7.85%, -17.57%)
- Romania: 16,031 (+13.26%) — growing European destination
- Japan: 11,369 (4.16%)
- Oman: 5,958 (+90.05%)
Outlook
With Malaysia reopening at scale, renewal permits rising strongly, and Gulf wages stable, remittance inflows are likely to remain robust through the remainder of FY 2025/26. Key risks include Gulf economic slowdown and rupee appreciation reducing the NPR value of dollar inflows.