Nepal has received remittances worth Rs 16 billion from the overseas workers in the first month of the current fiscal year. The figure is 35 percent growth over what the country received in the same period last year.
The growth has come at a time when experts and the government were expressing concerns over possible adverse impact of global economic slowdown, which has cut jobs in major labor destinations, on remittance income.
As remmitance stands as the mainstay of the Nepali economy, any drop in it is feared to adversely affect the market and economy as whole.
Nepal had received remiitances worth Rs 12.28 million in the first month of the last fiscal year. Despite financial crisis and its adverse impact on global economy, Nepal had received a total of Rs 2.09 billion in remittances from Nepalis working abroad.
Given that the remittances received this year have grown at rate higher than 31percent recorded for the same period last year, Nepal Rastra Bank (NRB) has reckoned that the adverse impact of global financial crisis has started to recede in major employer countries. It anticipates the growth to pick up further.
Rise in money supply resulting from the increased remittance transfer, however, could create problem for the NRB, country´s monetary authority, in checking inflation. Nepal´s inflation is already galloping in a double-digit figure.
However, as the remittance will fuel consumption, it will enable the government to generate higher revenue, noted economists. In the first month, country´s imports grew by 16 percent, crossing over Rs 25 billion.
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