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By Our Reporter

It is remittance sent by the Nepali migrant worker that is saving the national economy of Nepal. When the government has failed to establish industries and provide employment within the country, thousands of people have no option but to fly overseas as migrant workers and these poor lots are actually preventing the country from becoming bankrupt for years.

It is also evident from the latest report of the Nepal Rastra Bank. According to the report, remittance inflows into the country have shown a moderate increase of 7.3 per cent in the first seven months of the current fiscal year, reaching a total of Rs. 900.58 billion.

While this marks a growth, it is a notable downturn compared to the 18.8 per cent surge recorded during the same period last year. However, the total remittance receipt amounted to Rs. 137.5 billion in a single month of Magh from mid-January to mid-February, 2025. It stood at Rs. 122.65 billion a month ago.    

In terms of US dollar terms, remittance inflows rose by 5.3 per cent, reaching USD 6.65 billion, a more modest increase compared to the 16.4 per cent growth seen in the previous year, according a current macroeconomic and financial situation report made public by the Nepal Rastra Bank (NRB) on Monday.

Net secondary income (net transfer) reached Rs. 985.17 billion in the review period compared to Rs. 910.77 billion in the same period of the previous year.

The number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stands at 274,622 and taking approval for renewed entry stands at 190,886.

In the previous year, such numbers were 245,432 and 157,045 respectively.

The remittance also helped maintain foreign exchange reserves.

Despite the slower growth in remittance inflows, the country’s foreign exchange reserves remain strong.

According to the report, gross foreign exchange reserves increased by 16.1 per cent to Rs. 2,369.08 billion in mid-February 2025 from Rs. 2041.10 billion in mid-July 2024.

In US dollar terms, the gross foreign exchange reserves increased by 11.7 per cent to 17.05 billion in mid-February 2025 from 15.27 billion in mid-July 2024.

Similarly, the current account remained at a surplus of Rs. 166.80 billion in the review period compared to a surplus of Rs.162.52 billion in the same period of the previous year.

In US dollar terms, the current account registered a surplus of 1.24 billion in the review period against a surplus of 1.22 billion in the same period last year.

In the review period, net capital transfer amounted to Rs. 5.83 billion. In the same period of the previous year, such transfer amounted to Rs. 3.80 billion.