Nepal Remittance Growth Trend (Mid-March 2026)
Nepal's workers' remittances have been on a strong upward trend. The Nepal Rastra Bank's eight-month data for FY 2025/26 (mid-July 2025 to mid-March 2026) shows remittances reaching Rs. 1,449,652.62 million (~$10,148.77 million) — up 37.67% year-on-year in rupee terms.
Remittance Growth Trend: Three-Year Comparison
| Period | Workers' Remittances (Rs. M) | Workers' Remittances (USD M) | YoY Growth |
|---|---|---|---|
| 8M 2023/24 | 961,252.79 | — | — |
| 8M 2024/25 | 1,052,999.58 | 7,745.79 | +9.54% |
| 8M 2025/26 | 1,449,652.62 | 10,148.77 | +37.67% |
The acceleration from 9.54% growth in 2024/25 to 37.67% in 2025/26 is the key story. In USD terms, remittances grew by +$2,402.98 million year-on-year — adding over $2.4 billion in a single year.
Monthly Breakdown Context
The 8-month remittance credit of Rs. 1,449,652.62M implies an average monthly remittance of approximately Rs. 181,206.58 million (~$1,268.60 million) per month — significantly higher than the previous year's monthly average of Rs. 131,625.00M.
Drivers of Accelerated Growth in 2025/26
1. Exchange Rate Tailwind: The Nepali rupee has weakened against major currencies, meaning each dollar or dirham remitted converts to more rupees. This mechanically boosts rupee-denominated remittance figures.
2. Malaysia Reopening: Malaysia re-opened its labor market to Nepali workers in 2025/26 after years of restrictions. New permits surged from 1,076 (8M 2024/25) to 29,955 (8M 2025/26) — a 27x increase. Malaysia-based workers are now sending remittances at scale again.
3. Gulf Wage Increases: The UAE, Saudi Arabia, Qatar, and Kuwait have seen wage adjustments for skilled and semi-skilled workers, particularly in construction, hospitality, and healthcare.
4. Strong Renewal Base: Total renewal permits rose +15.91% to 251,985. This large pool of experienced, higher-earning workers abroad is sending more home than newly arrived migrants typically do.
5. Channel Formalization: More Nepali workers are using formal banking and mobile money channels, increasing official recorded inflows.
Remittance vs. GDP
At an 8-month run rate of Rs. 1,449,652.62M, the annualized remittance figure is approximately Rs. 2,174,478.93M. Nepal's GDP for 2025/26 is estimated at approximately Rs. 5,500,000M — meaning remittances could account for roughly 39-40% of GDP, making Nepal one of the world's most remittance-dependent economies.
Secondary Income: The Full Picture
Nepal's total secondary income (including remittances, pensions, and development aid) reached Rs. 1,600,525.89M for 8M 2025/26, up 38.4% from Rs. 1,156,571.05M in 2024/25. Net secondary income was Rs. 1,591,655.15M.
Risks to the Trend
- Gulf slowdown risk: Any drop in oil prices could reduce Gulf construction activity and worker demand
- Destination policy changes: Stricter labor policies in UAE, Malaysia, or Saudi Arabia could reduce migration
- Rupee appreciation: If NPR strengthens, rupee-denominated remittance growth could moderate despite stable USD inflows
- Automation in destination countries: Long-term risk to low-skill labor demand
Conclusion
Nepal's remittance growth in 2025/26 is exceptional — driven by a combination of exchange rate effects, Malaysia's reopening, Gulf wage increases, and a large established diaspora sending more. This trend is likely to continue through the rest of FY 2025/26, keeping Nepal's current account in comfortable surplus.