Nepalis Expatriates send money to Nepal as remittance is increasing day by day. Nepal’s economy, like that of many other developing countries such as Haiti, Kyrgyzstan, and Honduras, is dependent on remittances. According to the Nepal Rastra Bank’s survey, “The Status of Remittance Inflow in Nepal,” Nepal received NPR 879.3 billion (USD 7.8 billion) in remittances in fiscal year (FY) 2018/19, accounting for 25.4 percent of the country’s GDP of NPR 3.4 trillion (USD 29.8 billion).
In addition, remittance inflows outnumber both official development support and total foreign direct investment (FDI) in Nepal, making it the country’s primary source of foreign exchange reserves. Official development assistance totalled NPR 201.8 billion (£1263.26 million) in FY 2018/19, with gross inflows from foreign direct investment totalling NPR 13 billion (£81.23 million).
What Are The Advantages Of Growing Number Of Immigrants From A Developing Country?
Nepalese labour migration for money transfer to Nepal to support families has become an inextricable part of their lives. According to the most recent census, one out of every four households has at least one member living outside of the country. The out-migration trend has been fueled by a lack of job opportunities. By 2025, an additional 5 million people are projected to enter the Nepali labour market, based on the average recorded growth rate of the working-age population.
These statistics show a demographic pattern of increasing labour market strain as more young people prepare to enter the workforce. As a result, we anticipate that foreign jobs will continue to be an effective alternative for Nepali youngsters who are looking for desirable and decent local employment opportunities but are unable to find them. Most immigrants prefer to send money to Nepal online as this is a quick and faster way of money transfer. So, the government need to focus on facilitating foreign workers to increase remittance.
How To Empower Nepali Migrants Who Transfer Money To Nepal From Abroad?
By offering incentives to banks, telecommunications companies, remittance service providers, and payment infrastructure providers to reduce transaction fees and make structured remittances more appealing, the flow of remittances from unemployed migrant workers or those who have managed to keep their jobs could be set on more equitable terms. Bangladesh’s central bank has lifted the cap on the 2% “cashbacks” it gives remittance senders. Nepal may follow Bangladesh’s lead and provide incentives for online money transfer to Nepal.