Himal Press 
KATHMANDU: Remittance inflows rose by 18% percent during the first two months of the current fiscal year 2024/25. According to the latest Current Macroeconomic Situation Report published by Nepal Rastra Bank (NRB) on Thursday, Nepal received Rs 136.93 billion in remittances between mid-July to mid-September.
This marks a slightly slower growth compared to the same period of the previous fiscal year when remittances had surged by 22.8%. In US Dollar terms, the country received $1.02 billion in remittances during the review period, up from $879.8 million in the corresponding period of the previous fiscal year.
The uptick in remittance inflows comes amid steady foreign employment approvals. A total of 36,928 Nepali workers received first-time approval for foreign employment during the period, with an additional 22,647 securing re-entry approvals, the report states. Although there was a slight decrease in first-time approvals compared to the same period of the previous fiscal year, re-entry approvals increased significantly from 16,423.
Although remittances posted healthy growth, net services income posted a deficit of Rs 15.26 billion, up from Rs 11.25 billion in the same period of 2023/24. While travel income saw an 8.1% percent increase to Rs 4.76 billion, travel payments surged by 30.4% to Rs 22.5 billion, with education-related expenses making up the largest share (Rs 14.92 billion).
The current account registered a surplus of Rs 30.89 billion, a significant growth from Rs 13.37 billion in the same period of the previous year. The Balance of Payments (BOP) also remained at a surplus of Rs 40.90 billion, slightly higher than the Rs 36.43 billion over the first two months of the previous fiscal year.
Foreign direct investment (FDI), however, witnessed a sharp decline during the review period, with inflows dropping by 69.8% to just Rs 799.8 million, down from Rs 2.65 billion in the same period of the previous fiscal year.
