Remittances Drive Secondary Income to USD 1.39B in One Month for Nepal

Nepal’s external earnings remain heavily supported by migrant workers, with secondary income surging to USD 1.39 billion in just one month of FY 2025/26. According to the Balance of Payments (BoP) data released by Nepal Rastra Bank, this marks a sharp rise from USD 1.10 billion during the same period last year, driven primarily by strong remittance inflows.

Out of this, personal transfers — largely remittances — accounted for USD 1.27 billion, reinforcing their role as the backbone of Nepal’s economy. Other current transfers, including pensions and international cooperation, added modestly to the total.

Experts note that this inflow not only stabilizes the current account surplus but also cushions Nepal against its large trade deficit (USD −883 million). With imports still high and exports weak, remittances remain the lifeline for Nepal’s BoP stability and foreign reserves.

However, economists warn that over-reliance on remittances leaves Nepal vulnerable to external shocks such as changes in Gulf labor markets or global economic downturns. They stress the need for channeling these inflows into productive investments, industrial growth, and job creation within Nepal.