KATHMANDU: Remittances transferred to Nepal through official channels by Nepalis living overseas surged by 18% during the month of Shrawan (mid-July to mid-August) of the fiscal year 2024/25, totaling Rs 136.93 billion. This increase emphasizes how important remittances are to the economy of the nation even now.

36,928 Nepalis secured final work permits for overseas employment in the same month, both institutional and individual-new, according to a report from the Nepal Rastra Bank (NRB). When compared to the 39,152 permits that were issued during the same period last year, this number indicates a modest drop. Furthermore, the quantity of work visa renewals increased to 22,647 from 16,423 the year before, suggesting a persistent need for overseas job prospects.

In the previous year, net secondary income, comprising transfers and remittances, amounted to Rs 148.49 billion, showing an increase from Rs 128.21 billion. The increasing trend of net transfers shows the significance of remittances in sustaining household incomes in Nepal.

Remittance growth has been a major factor in the nation's gross foreign exchange reserves (FOREX), which as of mid-August had increased by 2.5 percent to Rs 2,092.22 billion. This increase in reserves is a sign of the stability and health of the economy.

The overall foreign exchange reserves increased by 2% during the review month, from $15.27 billion to $15.58 billion, valued in US dollars. This development is attributable to both the influx of foreign capital into the nation and increased financial confidence.

The NRB noted that there are enough foreign exchange reserves on hand to fund imports of goods for around 16.7 months. The ability of the nation to meet its import requirements without placing an immediate strain on its foreign reserves is highlighted by this coverage period.