KATHMANDU, Feb 8: Nepal received remittances worth 495.31 billion rupees in the first half of the current fiscal year, a growth of 11.1 percent compared to the same period last fiscal year despite a fall in the number of outbound workers during the period.
The Current Macroeconomic report released by Nepal Rastra Bank (NRB) on Monday shows that the number of individuals seeking foreign employment during the period between mid-July and mid-January declined by a whopping 77.6 percent. Similarly, the applicants for the renewal of foreign employment also went down by 68.9 percent.
In US dollar terms, the remittance inflow increased 6.7 percent to $ 4.19 billion during mid-July and mid-January compared to an increase of 0.9 percent in the same period last year. The NRB record shows that the country received an additional 78.50 billion rupees in remittances just in one month between mid-December and mid-January.
People seeking foreign jobs are on the rise after the government officially resumed issuing permits on September 1. According to the Department of Foreign Employment, it issued approvals to more than 47,000 individuals in January alone.
The double digit growth in remitted money posts an encouraging picture in terms of remittance, which is the main source of foreign currency earning for Nepal. The notable rise in the remittances has been attributed to an increasing use of banking channels to send money home by the migrant workers.
Along with the remittance earnings, the country received a net transfer worth 549.51 billion rupees, a growth of 8.9 percent during the review period. With a significant rise in remittance and net transfer, the country’s Balance of Payments registered a surplus of 124.92 billion rupees, compared to a surplus of 26.65 billion rupees during the review period.