Nepal received more remittance in the first 11 months of the current fiscal year than the size of the government’s entire annual budget, highlighting the country’s growing dependence on income earned by Nepali workers abroad.
According to a current macroeconomic and financial situation report released by Nepal Rastra Bank (NRB), remittance inflows surged by 38.2 per cent to Rs. 2.12 trillion during the first 11 months of fiscal year 2025/26, compared to a 15.6 per cent growth in the corresponding period last year.
The remittance inflow is Rs. 156.69 billion higher than the Rs. 1,964.11 billion national budget for the current fiscal year 2025/26.
During the month of Jestha (mid-May to mid-June) alone, the country received Rs. 203.89 billion in remittances, up from Rs. 176.32 billion in the same month of the previous fiscal year.
In the US dollar terms, remittance inflows increased by 29.6 per cent to 14.59 billion in the review period. Such inflow had increased by 12.8 per cent in the same period of the previous year.
The NRB report also showed that net secondary income (net transfer) reached Rs. 2321.07 billion in the review period. Such income was Rs. 1669.51 billion in the same period of the previous year.
The number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stands at 367,211 and taking approval for renewed entry stands at 355,735 in the review period.
In the same period of the previous year, such numbers were 452,324 and 308,067 respectively.
Forex reserves jump to record Rs. 3.75 trillion
The continued rise in remittance inflows has further strengthened the country’s external sector, supporting foreign exchange reserves, the balance of payments and the current account.
According to the report, gross foreign exchange reserves increased by 40.3 per cent to Rs. 3755.64 billion in mid-June 2026 from Rs. 2,677.68 billion in mid-July 2025.
In US dollar terms, the gross foreign exchange reserves increased by 26.5 per cent to 24.68 billion in mid-June 2026 from 19.50 billion in mid-July 2025.
Of the total foreign exchange reserves, the reserves held by NRB increased by 37.9 per cent to Rs. 3330.07 billion in mid-June 2026 from Rs. 2414.64 billion in mid-July 2025.
Reserves held by banks and financial institutions (except NRB) increased by 61.8 per cent to Rs. 425.57 billion in mid-June 2026 from Rs. 263.04 billion in mid-July 2025.
The share of Indian currency in total reserves stood at 21.5 percent in mid-June 2026.
Based on the imports of the eleven months of 2025/26, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 22.5 months, and merchandise and services imports of 19.1 months.
The ratio of reserves-to-GDP, reserves-to imports and reserves-to-M2 stood at 61.5 per cent, 159.5 per cent, and 43.7 per cent respectively in mid-June 2026. Such ratios were 43.8 per cent, 128.1 per cent, and 34.1 per cent respectively in mid July 2025.
Likewise, the current account remained at a surplus of Rs. 802.06 billion in the review period.
Such surplus was Rs. 321.74 billion in the same period of the previous year.
In US Dollar terms, the current account registered a surplus of 5.53 billion in the review period, compared to a surplus of 2.37 billion in the same period of the previous year.
In the review period, net capital transfer amounted to Rs. 17.03 billion.
In the same period of the previous year, such a transfer amounted to Rs. 8.96 billion. Similarly, during the review period, Rs. 22.82 billion in foreign direct investment (equity only) was received.
In the same period of the previous year, foreign direct investment inflows (equity only) amounted to Rs. 11.07 billion.
Balance of Payments (BoP) remained at a surplus of Rs. 926.06 billion in the review period. Such surplus was Rs. 491.44 billion in the previous year.
In US dollar terms, the BoP remained at a surplus of Rs. 6.39 billion in the review period, compared to a surplus of Rs. 3.62 billion in the same period of the previous year.
