Remittance inflows to Nepal increased notably during the first five months of the fiscal year, providing critical support to foreign exchange reserves and domestic consumption. Nepal Rastra Bank reported higher remittance transfers from Gulf countries, Malaysia, and South Korea. Increased use of formal banking channels has also improved transparency and financial inclusion. Economists note that while remittances help stabilize the economy, overdependence poses long-term risks unless accompanied by productive domestic investment and job creation.
