KATHMANDU, Dec 17: Amid an impressive growth in remittance inflows, the outflow under the same heading is found to have increased by 46 percent in the first four months of the current fiscal year.
The records maintained by Nepal Rastra Bank (NRB) show that foreign employees working in various organizations inside the country took away Rs 3.16 billion during mid-July and mid-November. The amount was Rs 2.17 billion during the same period last year.
Foreign workers who arrive in Nepal with a government-issued work permit are responsible for this amount of remittance leaving the country. These workers can remit 75 percent of their earnings to their home country, with a stipulation that they must spend 25 percent of their earned money within Nepal. Notably, this provision excludes remittances sent by foreign workers engaged in the informal sector in Nepal.
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Many Indian workers are informally employed in Nepal and repatriate their earnings in cash, a factor not reflected in the reported figures.
Nepal hosts foreign employees in foreign investment companies, various projects, banks, and financial institutions. Workers from China and India also participate in hydropower projects, earning income in Nepal and remitting funds to their home countries, mirroring the process of Nepalis sending remittances back home while working abroad.
Remittances coming to Nepal during the review period increased by 26.4 percent to Rs 477 billion. In the same period of the previous year, the remittance inflow increased by 20.4 percent.
In the review period of the last year, remittances worth Rs 311 billion came to Nepal. During this review period, remittances coming into Nepal exceed outgoings by Rs 474 billion. It is noted that the inflow of remittances has surged following an increase in the number of Nepalis seeking employment abroad.
