Nepal's remittance economy
How money sent home by Nepalis working abroad grew into the largest source of foreign income in the economy.
Nepal's total remittance income was Rs 47.2 billion in the fiscal year to mid-July 2001, according to a Nepal Rastra Bank paper. Only about 20 per cent of it was estimated to have come through official channels.
Nepal Rastra Bank, Economic ReviewNepal Rastra Bank began licensing private remittance companies and later paid licensed firms a small commission per dollar to steer remittances into the banking system.
Nepal Rastra Bank, Economic ReviewRemittance income reached Rs 65.4 billion in the fiscal year to mid-July 2005, and about 67 per cent of it came through official channels. The central bank paper credited policy measures for part of the shift.
Nepal Rastra Bank, Economic ReviewNepal adopted the Foreign Employment Act 2007, with provisions to protect migrant workers and to regulate and monitor recruitment agencies.
Nepal Rastra Bank, Economic ReviewRemittances reached Rs 543.29 billion in the fiscal year to mid-July 2014.
The Rising NepalPersonal remittances were equal to about 27.6 per cent of Nepal's GDP, according to World Bank data.
World BankThe free visa, free ticket rule took effect for workers going to Malaysia and six Gulf countries, requiring employers to pay for visas and air fares and capping what workers could be charged.
The Kathmandu PostNepal Rastra Bank reported that remittances rose 13.6 per cent to Rs 617.28 billion in the fiscal year to mid-July 2015. Inflows picked up after the April earthquake as workers sent money home to rebuild.
The Himalayan TimesNepal Rastra Bank figures indicated that only 70 to 80 per cent of remittances came through formal channels, with the rest arriving through the informal hundi system.
The Kathmandu PostNepal and Malaysia signed their first labour agreement, under which Malaysian employers bear recruitment costs including air fares and visa fees. Nepal had halted labour migration to Malaysia in May 2018 over excessive fees.
The Kathmandu PostThe government formally resumed labour migration to Malaysia after a halt of nearly 16 months.
The Kathmandu PostRemittances crossed Rs 1 trillion for the first time in the fiscal year to mid-July 2022, or $8.33 billion, according to Nepal Rastra Bank.
The Kathmandu PostNepal Rastra Bank reported remittances of Rs 1.22 trillion in the fiscal year to mid-July 2023, as new labour approvals rose to around 497,000.
The Himalayan TimesRemittances rose 16.5 per cent to Rs 1.45 trillion ($10.86 billion) in the fiscal year to mid-July 2024, helping move the current account into surplus.
Himal PressPersonal remittances were equal to about 32 per cent of GDP, according to World Bank data.
World BankRemittances rose 19.2 per cent to Rs 1.72 trillion ($12.64 billion) in the fiscal year to mid-July 2025, according to Nepal Rastra Bank.
B360 NepalRemittances rose 37.1 per cent to a record Rs 2.36 trillion ($16.19 billion) in the fiscal year to mid-July 2026, according to Nepal Rastra Bank. First-time labour approvals fell to 406,519 from 505,957.
B360 Nepal
How this timeline was made: compiled by The Standard’s desk with AI assistance from the sources linked under each event, and checked against them. Allegations are allegations; an arrest or charge is not a finding of guilt. Spotted an error? Write to [email protected].
Our reporting
Nepal's workers sent home more in one month than the state invested in a year
Remittances reached Rs 2.36 trillion ($16.19bn) in 2025/26, more than the national budget, while capital spending fell below half its target and private credit stayed weak.
Remittance money meets inflation as Nepal shops for Dashain
Record transfers from abroad should make this the biggest festival season yet. Prices, a closed China border and nervous shoppers are getting in the way.
How Chandra Dhakal built a bank on the money Nepalis send home
In 2001 most of Nepal's remittances moved through informal hundi brokers. The IME founder bet that migrant workers would trust a licensed company instead, and turned that bet into the country's largest bank.
Nepal cannot keep exporting its young people as its main growth strategy
Remittances now exceed the national budget. That is a measure of failure at home as much as success abroad.