Remittances to Nepal

Remittances to Nepal are money transfers from Nepalese workers employed outside the country to friends or relatives in Nepal and form part of the wider global remittance transfers by migrant workers back to their home countries. Remittances constitute a substantial economic pillar for Nepal. In 2023, these inward transfers were valued at an estimated US$11 billion, contributing a significant 26.6% to the nation's gross domestic product.^[1] This surpasses the aggregate inflow from both official development assistance and foreign direct investment, underscoring the critical role of remittances in Nepal's economic landscape.

It is said that remittances represented more than 20 percent of GDP in Nepal in the year 2017 onwards. Moreover, it would be highly beneficial to the country, where there are natural calamities, political conflict, people war, low investment in entrepreneurial activities and economic recession.^[2] In the financial year (FY) 2000/01, the banking sector showed that NPR 15.9 billion was received.^[3]

Remittances to Nepal are facilitated by numerous remittance companies operating through global partner networks. Among the major players are eSewa Money transfer- EMT, City Express, IME- GME Ltd. & Nepali Remit. Other notable companies include RIA, Western Union, TalkRemit, Remit Choice, ACE Money Transfer, Xoom, Crosspay Money Transfer, Paysend, Moneygram, Remitly, WorldRemit, and Wise.