Other Current Transfers Rise to USD 108M: Boost to Household Income

Nepal recorded a significant increase in other current transfers, reaching USD 108 million in the first month of fiscal year 2025/26, according to the latest Balance of Payments (BoP) data from Nepal Rastra Bank (NRB). This marks a strong rise from USD 79 million in the same period of 2024/25, signaling a steady expansion in secondary income sources beyond traditional remittances.

The category “other current transfers” includes inflows such as foreign pensions, insurance claims, welfare payments, international cooperation grants, and miscellaneous household support. Experts say the steady growth reflects improved inflows from foreign aid agencies, social-security schemes for Nepali migrants, and retirement benefits of workers returning from abroad.

This segment, though smaller than workers’ remittances, has become an important stabilizer for rural and elderly households in Nepal. For example, pension inflows alone contributed about USD 53 million, while international cooperation and miscellaneous grants added nearly USD 55 million. These transfers help sustain household consumption, health spending, and small-scale investments—especially at a time when inflation and domestic employment remain challenging.

Economists highlight that the rise in such transfers complements remittance flows, helping Nepal maintain its current-account surplus and domestic liquidity. However, they caution that the country should strengthen transparency and efficiency in aid utilization to ensure long-term sustainability.