Nepal UK
Money sent home by Nepalese workers abroad rose 23.9 per cent to Rs 436.36 billion in the first two months of the 2026/27 fiscal year, but the pace is markedly slower than a year ago and fewer people are leaving for work for the first time.
The figures come from Nepal Rastra Bank’s macroeconomic report for the period to mid-September, as reported on 15 October. In the same two months a year earlier, remittances grew 33.1 per cent. Measured in US dollars, inflows rose 13.5 per cent to $2.85 billion, compared with 27.6 per cent growth a year earlier. The gap between the rupee and dollar growth rates implies the rupee was weaker against the dollar than a year earlier; that is NepalUK’s calculation from the reported figures, not a statement by the central bank. Bhadra alone brought in Rs 221.31 billion, up from Rs 174.67 billion.
Fewer first-time departures
The report shows first-time labour permits falling to 78,320 from 90,198, a drop of about 13 per cent by NepalUK’s calculation. Renewals rose to 52,163 from 45,884, about 14 per cent. In other words, growth in remittances is being driven more by workers already abroad than by new departures. The reports reviewed do not explain the fall in first-time permits, and the figures alone do not show why.
External accounts
Strong remittances have kept the external position comfortable. The current account recorded a surplus of Rs 169.04 billion, up from Rs 130.97 billion, and the overall balance of payments a surplus of Rs 187.68 billion, up from Rs 153.68 billion. Gross foreign-exchange reserves stood at Rs 4,065.78 billion, or $26.48 billion, in mid-September, up 4.6 per cent in dollar terms since mid-July. The central bank says that is enough to cover 20.9 months of prospective merchandise imports, or 17.8 months of goods and services.
Other lines in the report point to wider household behaviour. Travel income rose 28.6 per cent to Rs 14.94 billion, while travel payments fell 13.1 per cent to Rs 41.10 billion. Within that, education-related travel payments fell 9.8 per cent to Rs 29.55 billion. Foreign direct investment, excluding reinvested earnings, rose to Rs 2.98 billion from Rs 1.27 billion, though from a small base.
Why the numbers matter beyond the headline
Remittances are largely household income, and for many Nepalese families with relatives overseas they pay for food, schooling and debt repayment. A slowdown from 33 per cent growth to 24 per cent still represents strong growth in rupee terms. The dollar figure of 13.5 per cent matters because Nepal pays for imports in foreign currency.
Two cautions apply. Two months is a short period and monthly inflows can be volatile; the data end in mid-September, before Dashain, so they do not capture any festival-season transfers. And the data cover only formally recorded inflows. The Finance Ministry’s own annual bulletin, reported this week, describes remittances and reserves as being at record highs even as it forecasts weaker growth and heavy flood-related spending, so these inflows are cushioning the external accounts rather than resolving pressure on the government’s budget.
