Kathmandu: Nepal has recorded an impressive remittance inflow of approximately Rs 1200 billion over the past 10 months of the current fiscal year. According to data released by the Nepal Rastra Bank on Monday, this marks a significant increase of 19.02 percent compared to the same period in the previous fiscal year. Specifically, the country received Rs 1198 billion in remittance up until the end of Baisakh month.

This growth in remittance is notable when compared to the 23.4 percent increase witnessed during the same period last fiscal year. The data underscores the critical role that remittances play in Nepal's economy, providing essential support for many families and contributing to the country's overall financial stability.

During this review period, the number of labor permits issued for foreign employment reached 374 thousand, encompassing both institutional and individual permits. Additionally, 237 thousand people sought labor permits for the second time, indicating a substantial number of Nepali workers returning to or continuing their employment abroad.

The increase in remittance inflows is likely a result of multiple factors, including the sustained demand for Nepali labor in international markets and improved channels for remittance transfers. This inflow of funds has a positive impact on Nepal’s economy, facilitating household expenditures, savings, and investments, thus contributing to the nation’s economic growth.

As remittances continue to be a vital economic pillar, the government and financial institutions are encouraged to enhance policies and services that support migrant workers and optimize the process of remittance transfers. Ensuring the welfare of these workers and the efficient management of remittance inflows will be crucial in maintaining and boosting this economic lifeline for Nepal.