Monday, October 25, 2021

Remittance inflow drops for the second straight month

Remittance inflow to Nepal has dropped for the second straight month in the current fiscal year.

Nepal’s remittance income declined by 6.3 per cent to Rs 155.37 billion during the first two months of the current fiscal year, according to a report published today by the central bank.

In the same period last fiscal year, remittance inflows had increased by 8.1 per cent, the central bank report added. But the remittance inflow started dropping from the beginning of the current fiscal year due to massive decline in Nepali migrant workers outflow since last 18 months due to Covid-19 pandemic.

According to the two months’ report ‘Current Macroeconomic and Financial Situation of Nepal’, published today by the central bank, the country’s receipt from remittance declined despite a notable rise in the outbound workers, though in the last month. The Nepali migrant workers outflow starting picking from last month, and it will take at least 6 to 8 months for them to start sending remittance back home. During mid-July and mid-September this year, the number of Nepali workers (institutional and individual-new and legalised) taking approval for foreign employment stood at 38,492, almost 100 times more than the same period in the last fiscal year.

Likewise, the number of Nepali workers (Renew entry) taking approval for foreign employment increased significantly to 22,976 from mid-July and mid-September compared to a decline of 86.5 per cent in the same period of fiscal year 2020-21.

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