Remittance Inflows Surge by Over 31 Percent, Strengthening Nepal’s External Position

Remittance inflows continued to play a crucial stabilizing role in Nepal’s economy during the first four months of fiscal year 2082/83 (up to mid-November 2025), recording a sharp increase compared to last year. According to data released by Nepal Rastra Bank, remittance inflows rose by 31.4 percent to Rs 687.13 billion during the review period. In the same period last year, remittances had increased by just 9.4 percent, highlighting a significant acceleration in inflow growth.

The strong performance of remittances has helped cushion the economy against pressures from a widening trade deficit and a growing service account shortfall. Economists note that at a time when imports remain high and service-sector outflows are rising, remittances have emerged as the primary source of external financing stability.

Monthly Inflows Remain Strong

In mid-November 2025 alone, remittance inflows reached Rs 133.82 billion, up from Rs 114.31 billion in the same month last year. The sustained rise in monthly inflows suggests improved earnings of Nepali workers abroad and a growing shift toward formal remittance channels, supported by better financial access and digital transfer systems.

Dollar Inflows Also Increase

Measured in US dollars, remittance inflows during the review period increased by 25.3 percent to USD 4.88 billion. In contrast, dollar-denominated remittances had grown by only 8.2 percent in the same period last year. The rise in foreign currency inflows has had a positive impact on foreign exchange reserves, helping strengthen Nepal’s capacity to meet external payment obligations.

Secondary Income Shows Sharp Growth

Reflecting the strong remittance performance, net secondary income (net transfers) rose to Rs 754.93 billion, compared to Rs 569.29 billion in the same period last year. This sharp increase has provided additional support to the balance of payments, offsetting deficits in the trade and service accounts.

Overseas Employment Trends

During the review period, the number of Nepalis receiving final labor approval for foreign employment (new, institutional and individual) stood at 145,973, while 127,837 workers received re-entry labor approval. In the same period last year, the corresponding figures were 147,478 for new approvals and 94,105 for re-entry approvals.

The data indicate that while the number of new migrant workers has slightly declined, a significant increase in re-entry approvals suggests that many Nepalis are continuing their overseas employment for longer periods. Analysts say this trend has helped sustain and boost remittance inflows despite slower growth in new labor migration.

The latest figures underline Nepal’s continued reliance on remittances as a backbone of its external sector. While the strong growth in inflows has helped stabilize the economy, experts caution that excessive dependence on foreign employment poses long-term risks. They emphasize the need for policies that channel remittance income into productive investment, job creation and domestic industrial growth.

Overall, the first four months of FY 2082/83 show that remittances remain a powerful support for Nepal’s economy, even as challenges persist in trade, services and investment.