Nepal Remittance – Scale and GDP Share

Details

Remittances are Nepal's single largest source of foreign exchange, significantly exceeding export earnings. Key data for FY 2024/25 and early FY 2025/26:

Remittance Inflows (Q1 FY 2025/26): NPR 553.31 billion (a $35.4%$ rise year-on-year).
Monthly Remittances (November 2025): Crossed NPR 200 billion/month for the first time.
Remittance as a % of GDP: Approximately $25%$ to $27%$ of GDP.
Labor Migration: Around 200,716 workers received labor approvals in Q1 FY 2025/26 alone (an $18%$ year-on-year rise).

Top Destination Countries

The top destination countries for Nepalese workers include:

Gulf Countries (Qatar, UAE, Saudi Arabia, Kuwait).
East and South-East Asia (Malaysia, South Korea via EPS, Japan).
Western/Oceania Countries (Australia, USA, UK).

Rising outmigration is driven by a sluggish domestic labor market and higher wages abroad. Remittances heavily fund domestic private consumption, import duties (which support government revenue), and sustain the country's current account balance and foreign exchange reserves. Practise these concepts as timed MCQs to lock the pattern in.

Category

Remittance

Fiscal Year

2082

Key Figure/Rate

Remittance: 25-27% of GDP, NPR 553.31B (Q1 FY25/26)