Kathmandu — Remittances sent home by Nepali migrant workers reached a record Rs 1.6 trillion in the fiscal year that ended in mid-July, according to Nepal Rastra Bank data released Tuesday, a 9.4 percent increase over the previous year and equivalent to roughly a quarter of GDP.
The bank attributed the rise to a weaker rupee, steady demand for Nepali labour in Gulf countries and Malaysia, and growing use of formal banking channels over informal hundi transfers. Malaysia and Qatar together accounted for nearly forty percent of total inflows.
Economists welcomed the boost to foreign exchange reserves but repeated long-standing warnings that the economy remains overly dependent on labour migration. "Remittances have kept the current account afloat, but they are not a substitute for domestic job creation," said economist Chandan Sapkota, calling for stronger incentives to channel remittance income into productive investment rather than consumption.