Remittance inflow into Nepal reached Rs 1,191.31 billion in the first nine months of the current fiscal year, reflecting a year-on-year increase of 10.0 percent, according to the latest report of Nepal Rastra Bank (NRB). In the same period last fiscal year, remittance inflows had grown by 17.2 percent, states the Current Macroeconomic and Financial Situation Report of Nepal unveiled by the central bank on Sunday.

In terms of the US dollar, remittance inflows increased 7.3 percent to USD 8.74 billion in the review period, compared to a growth of 15.2 percent in the same period of the previous year, the report added.

Remittances continue to play a critical role in Nepal’s economy, which is heavily reliant on income from its migrant workers abroad. Remittances contribute to more than one-fourth of Nepal’s GDP, helping to support household consumption, reduce poverty, and stabilize foreign exchange reserves. According to the World Bank, remittance inflows accounted for about 27.1 percent of Nepal’s GDP in 2023, making the country one of the highest recipients of remittances as a share of GDP globally.

According to NRB, net secondary income—also referred to as net transfers—reached Rs 1,301.94 billion in the review period, up from Rs 1,174.54 billion in the same period of the previous year. Net transfers primarily include remittance income and other current transfers received by individuals and the government from abroad, minus transfers sent out of the country. It reflects the net inflow of unrequited (non-repayable) transfers into the economy.

Meanwhile, the number of Nepali workers—both institutional and individual—taking first-time approval for foreign employment stood at 358,222 in the review period, while those receiving approval for re-entry permits stood at 249,652. In the previous year, the numbers were 327,842 and 211,226, respectively.