Workers’ Remittances Cross USD 1.26B in a Month – Record High for Nepal

Nepal has recorded an all-time high monthly inflow of workers’ remittances, reaching USD 1.26 billion in the first month of FY 2025/26. According to the latest Balance of Payments (BoP) report published by Nepal Rastra Bank, this marks a sharp increase from USD 1.02 billion in the same period of the previous fiscal year — a growth of nearly 24 percent.

Remittances now account for over 70 percent of Nepal’s total current account receipts, cementing their role as the economy’s lifeline amid persistent trade and services deficits. The massive inflow helped maintain a current account surplus of USD 561 million and contributed to the sharp rise in foreign reserves to USD 671 million.

Economic analysts attribute this record surge to rising labor outflows, improved remittance channels through banking systems, and the depreciation of the Nepali rupee, which encouraged workers abroad to send more money home.

However, experts caution that such dependence poses long-term vulnerabilities. While remittances stabilize consumption and external reserves, limited productive investment of these inflows continues to constrain Nepal’s domestic job creation and industrial growth. Economists have urged policymakers to channel remittances into entrepreneurship, SMEs, and infrastructure projects to ensure sustainable growth.