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'''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]].<ref>{{Cite web |last=Lohia |first=Yamini |date=11 June 2024 |title=IFAD, IOM Celebrate Vital Role of Remittances in Nepal’s Development |url=https://www.ifad.org/en/web/latest/-/ifad-iom-celebrate-vital-role-of-remittances-in-nepal-development#:~:text=Remittances%20are%20critical%20in%20Nepal,foreign%20direct%20investment%20to%20Nepal.}}</ref> 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.<ref>{{Cite report | author = Yadav Sharma Gaudel | date = December 2006 | title = Remittance Income in Nepal: Need for Economic Development | url = http://www.nepjol.info/index.php/JNBS/article/download/491/478 | publisher = The Journal of Nepalese Business Studies | chapter=Significance of Remittances | page = 10 }}</ref> In the [[financial year]] (FY) 2000/01, the banking sector showed that [[Nepalese rupee|NPR]] 15.9 billion was received.<ref>{{Cite report | author = Yadav Sharma Gaudel | date = December 2006 | title = Remittance Income in Nepal: Need for Economic Development | url = http://www.nepjol.info/index.php/JNBS/article/download/491/478 | publisher = The Journal of Nepalese Business Studies | chapter=Remittance Income in Nepal | page = 12 }}</ref>
'''Remittances to Nepal''' are money transfers from Nepalese workers employed outside the country to friends or relatives in [[Nepal]] and forms part of the wider global [[remittance]] transfers by migrant workers back to their home countries.


Remittances to Nepal are facilitated by numerous remittance companies operating through global partner networks.
It is said that remittances has represented more than 10 percent of GDP in Nepal in the late 1990s. Moreover, it would be highly beneficial to the country, where there is natural calamities, political conflict, people war, low investment in entrepreneurial activities and economic recession.<ref>{{Cite report | author = Yadav Sharma Gaudel | authorlink = | coauthors = | date = December 2006 | title = Remittance Income in Nepal: Need for Economic Development | url = http://www.nepjol.info/index.php/JNBS/article/download/491/478 | publisher = The Journal of Nepalese Business Studies | format = | others = | edition = | location = | chapter =Significance of Remittances | section = | page = 10 | pages = | docket = | accessdate = | quote =}}</ref> In the [[financial year]] (FY) 2000/01, the banking sector showed that [[Nepalese rupee|NPR]] 15.9 billion was received.<ref>{{Cite report | author = Yadav Sharma Gaudel | authorlink = | coauthors = | date = December 2006 | title = Remittance Income in Nepal: Need for Economic Development | url = http://www.nepjol.info/index.php/JNBS/article/download/491/478 | publisher = The Journal of Nepalese Business Studies | format = | others = | edition = | location = | chapter =Remittance Income in Nepal | section = | page = 12 | pages = | docket = | accessdate = | quote =}}</ref>


== Amount ==
In [[Nepal]], the dollar value of remittances expanded 17 percent, supported in part by vibrant growth in [[India]], a key source-country for Nepalese
In 2023, Nepal's inward remittance inflows surged by 15.4% compared to the previous year, reaching a total of over $11 billion. This substantial increase underscores the significant contributions of approximately 3.5 million Nepali expats and migrant workers who remit a substantial portion of their earnings to support families back home.<ref>{{Cite web |title=Nepal brief |url=https://www.mideq.org/ |access-date=2024-08-12 |website=MIDEQ - Migration for Diversity and Equality |language=en}}</ref>
remittances.<ref>{{Cite report | author = The World Bank | authorlink =The World Bank | coauthors = | date = June 2011 | title = Global Economic Prospects | url = http://siteresources.worldbank.org/INTGEP/Resources/335315-1307471336123/7983902-1307479336019/Full-Report.pdf | publisher = The World Bank | format = | others = | edition = | location = | chapter =Regional Annex: [[South Asia]] | page = | pages =120, 121 | docket = | accessdate = | quote =}}</ref>


== Remittances Received in Nepal (Yearly) ==
Money is sent to Nepal by either [[electronic funds transfer|electronic fund's transfer]]s for example by [[SWIFT]] or by [[demand draft]]. By the 2000s many banks and [[Money Transfer Operators]] were offering Money transfers and this has grown into a huge business.
[[Remittance|Remittances]] have been a significant source of [[Foreign exchange reserves|foreign exchange]] for [[Nepal]], contributing substantially to the country's [[Economy of Nepal|economy]]. The following table presents the annual remittance inflows to Nepal from 2005 to 2023, as reported by the [[World Bank]].<ref>{{Cite web |title=World Bank Open Data |url=https://data.worldbank.org/ |access-date=2024-08-12 |website=World Bank Open Data}}</ref> The data highlights the overall upward trend in remittances over the period.
{| class="wikitable"
|+
!Year
!Total Remittances
(USD Billion)
|-
|2005
|$1.21
|-
|2006
|$1.45
|-
|2007
|$1.73
|-
|2008
|$2.73
|-
|2009
|$2.98
|-
|2010
|$3.46
|-
|2011
|$4.22
|-
|2012
|$4.79
|-
|2013
|$5.58
|-
|2014
|$5.89
|-
|2015
|$6.73
|-
|2016
|$6.61
|-
|2017
|$6.93
|-
|2018
|$8.29
|-
|2019
|$8.24
|-
|2020
|$8.11
|-
|2021
|$8.23
|-
|2022
|$9.29
|-
|2023
|$11+
|}


== Social impact<ref>{{Cite web|date=2012-07-05|title=Remittances are not the only reason young Nepalese decide to migrate {{!}} Jonathan Glennie|url=http://www.theguardian.com/global-development/poverty-matters/2012/jul/05/money-not-only-motivation-nepalese-migrants|access-date=2020-10-31|website=the Guardian|language=en}}</ref> ==
== Amount ==
Remittances in FY 2012/13 contributed around $3.5bn a year to Nepal's annual income, up from just $50m in the mid-1990s, and equivalent to almost a quarter of GDP. In fact, the figure is probably substantially higher as remittances are routinely underestimated; the rule of thumb is to add 40% to the official figures. Not all money is sent through legal/verifiable sources.

== Social Impact ==
According to World Bank figures, extreme poverty has declined from almost 70% to 25% in the last 15 years, and the extra billions arriving directly to Nepalese households during this period are undoubtedly part of the story, along with large-scale state investment in social sectors and infrastructure.
According to World Bank figures, extreme poverty has declined from almost 70% to 25% in the last 15 years, and the extra billions arriving directly to Nepalese households during this period are undoubtedly part of the story, along with large-scale state investment in social sectors and infrastructure.


The social impacts of such migration are likely to be at least as profound as the financial ones, particularly with regard to family and gender relations. In some Nepalese villages, up to 90% of the young men have left, returning at most every six months. In a case that hit the Nepalese media, there were not enough men left in one particular village to carry a coffin, meaning women had to – women traditionally do not even attend funerals.
The social impacts of such migration are likely to be at least as profound as the financial ones, particularly with regard to family and gender relations. In some Nepalese villages, up to 90% of the young men have left, returning at most every six months. In a case that hit the Nepalese media, there were not enough men left in one particular village to carry a coffin, meaning women had to – women traditionally do not even attend funerals.


Men (and some women) who would have previously expected to spend all of their lives in one place are travelling in groups to new areas, and sexual promiscuity is one inevitable consequence. HIV appears to be significantly higher than the national average among migrants and divorces are on the increase.
Men (and some women) who would have previously expected to spend all of their lives in one place are traveling in groups to new areas, and sexual promiscuity is one inevitable consequence. HIV appears to be significantly higher than the national average among migrants, and divorces are on the increase.


One research demonstrated two important results: (i) migration negatively affects agriculture yield and (ii) remittance-receiving agriculture households have not demonstrated improvements in agriculture productivity despite increased household incomes. This paper recommends the need for measures to incentivize remittance-receiving agriculture households to invest in capital goods and inputs to improve agriculture productivity so that it more than compensates for the yield losses arising from labor migration.
One research demonstrated two important results: (i) migration negatively affects agriculture yield, and (ii) remittance-receiving agriculture households have not demonstrated improvements in agriculture productivity despite increased household incomes. This paper recommends the need for measures to incentivize remittance-receiving agriculture households to invest in capital goods and inputs to improve agriculture productivity so that it more than compensates for the yield losses arising from labour migration.


On the positive side, it is possible that the ongoing process of women's empowerment has been speeded up in some parts of Nepal. Fertility has fallen by 30% in the last decade, according to the World Bank. With fewer men around, women are forced to take more of a lead in household and community decisions, including managing limited funds. Women's increased decision-making control is one key factor in the rapid improvement in maternal health in Nepal in the last two decades, including a halving of maternal mortality. This is despite the "brain drain" of Nepal's trained health workers from Nepalese health facilities, another classic consequence of increased migration.
On the positive side, it is possible that the ongoing process of women's empowerment has been speeded up in some parts of Nepal. Fertility has fallen by 30% in the last decade, according to the World Bank. With fewer men around, women are forced to take more of a lead in household and community decisions, including managing limited funds. Women's increased decision-making control is one key factor in the rapid improvement in maternal health in Nepal in the last two decades, including a halving of maternal mortality. This is despite the "brain drain" of Nepal's trained health workers from Nepalese health facilities, another classic consequence of increased migration.

== Popular Destinations ==
* Saudi Arabia
* Malaysia
* Denmark
* United Arab Emirates
* Israel
* India
* Kuwait
* Bahrain
* South Korea
* Japan
* United Kingdom
* Hong Kong
* United States
* Australia
* Canada
* Qatar
* Korea


== References ==
== References ==
{{Reflist}}
{{Reflist}}
== List Of Top 5 Remittance Company in Nepal ==
* [http://www.imeremit.com.np IME LTD]
* [http://www.ipayremittal.com I Pay Remit]
* Prabhu Money Transfer
* Himal Remit (Product of Himalayan Bank Ltd)
* City Express Money Transfer Pvt Ltd
* [https://acemoneytransfer.com/ ACE Money Transfer]


== External links ==
== External links ==

Latest revision as of 13:31, 11 September 2024

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.

Amount

[edit]

In 2023, Nepal's inward remittance inflows surged by 15.4% compared to the previous year, reaching a total of over $11 billion. This substantial increase underscores the significant contributions of approximately 3.5 million Nepali expats and migrant workers who remit a substantial portion of their earnings to support families back home.[4]

Remittances Received in Nepal (Yearly)

[edit]

Remittances have been a significant source of foreign exchange for Nepal, contributing substantially to the country's economy. The following table presents the annual remittance inflows to Nepal from 2005 to 2023, as reported by the World Bank.[5] The data highlights the overall upward trend in remittances over the period.

Year Total Remittances

(USD Billion)

2005 $1.21
2006 $1.45
2007 $1.73
2008 $2.73
2009 $2.98
2010 $3.46
2011 $4.22
2012 $4.79
2013 $5.58
2014 $5.89
2015 $6.73
2016 $6.61
2017 $6.93
2018 $8.29
2019 $8.24
2020 $8.11
2021 $8.23
2022 $9.29
2023 $11+

Social impact[6]

[edit]

According to World Bank figures, extreme poverty has declined from almost 70% to 25% in the last 15 years, and the extra billions arriving directly to Nepalese households during this period are undoubtedly part of the story, along with large-scale state investment in social sectors and infrastructure.

The social impacts of such migration are likely to be at least as profound as the financial ones, particularly with regard to family and gender relations. In some Nepalese villages, up to 90% of the young men have left, returning at most every six months. In a case that hit the Nepalese media, there were not enough men left in one particular village to carry a coffin, meaning women had to – women traditionally do not even attend funerals.

Men (and some women) who would have previously expected to spend all of their lives in one place are traveling in groups to new areas, and sexual promiscuity is one inevitable consequence. HIV appears to be significantly higher than the national average among migrants, and divorces are on the increase.

One research demonstrated two important results: (i) migration negatively affects agriculture yield, and (ii) remittance-receiving agriculture households have not demonstrated improvements in agriculture productivity despite increased household incomes. This paper recommends the need for measures to incentivize remittance-receiving agriculture households to invest in capital goods and inputs to improve agriculture productivity so that it more than compensates for the yield losses arising from labour migration.

On the positive side, it is possible that the ongoing process of women's empowerment has been speeded up in some parts of Nepal. Fertility has fallen by 30% in the last decade, according to the World Bank. With fewer men around, women are forced to take more of a lead in household and community decisions, including managing limited funds. Women's increased decision-making control is one key factor in the rapid improvement in maternal health in Nepal in the last two decades, including a halving of maternal mortality. This is despite the "brain drain" of Nepal's trained health workers from Nepalese health facilities, another classic consequence of increased migration.

References

[edit]
  1. ^ Lohia, Yamini (11 June 2024). "IFAD, IOM Celebrate Vital Role of Remittances in Nepal's Development".
  2. ^ Yadav Sharma Gaudel (December 2006). "Significance of Remittances". Remittance Income in Nepal: Need for Economic Development (Report). The Journal of Nepalese Business Studies. p. 10.
  3. ^ Yadav Sharma Gaudel (December 2006). "Remittance Income in Nepal". Remittance Income in Nepal: Need for Economic Development (Report). The Journal of Nepalese Business Studies. p. 12.
  4. ^ "Nepal brief". MIDEQ - Migration for Diversity and Equality. Retrieved 2024-08-12.
  5. ^ "World Bank Open Data". World Bank Open Data. Retrieved 2024-08-12.
  6. ^ "Remittances are not the only reason young Nepalese decide to migrate | Jonathan Glennie". the Guardian. 2012-07-05. Retrieved 2020-10-31.
[edit]
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