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Kathmandu, Nov 17: Nepal’s monthly remittance inflows have surpassed Rs200 billion for the first time, boosted by a stronger US dollar and stricter anti-money laundering rules, which have increased transparency and security in money transfers. The central bank reported that from mid-September to mid-October, remittances reached Rs201.22 billion, up from Rs144.17 billion in the same period last year.

Seasonal demand during major festivals—Dashain, Tihar, and Chhath—contributes heavily, as Nepalis abroad send more money home. Economists note that nearly 40 percent of GDP-related economic activity occurs during this period. In the first quarter of fiscal year 2025–26, remittance inflows rose 35.4 percent to Rs553.31 billion, compared with an 11.9 percent increase in the same period last year.

The surge is linked to rising outmigration, driven by limited domestic job opportunities, a sluggish economy, and political uncertainty. In the first quarter alone, 200,716 Nepalis departed for foreign employment, an 18 percent increase from the previous year. Among them, 123,459 were first-time workers and 77,257 were renewals. Last fiscal year, 839,266 Nepalis went abroad for work, excluding 119,409 students who left in 2024.

Despite rising remittances and foreign exchange reserves, domestic job creation remains weak. Reserves now stand at Rs2.97 trillion ($21.21 billion), enough to cover 16.4 months of imports. Business leaders point out that while remittances and investable capital have grown, low development spending and weak domestic demand keep the economy sluggish. Economists warn that without stronger industrial growth, unemployment could rise, further increasing the outflow of young workers.

People’s News Monitoring Service