Remittance inflow expected to rise to USD 8.5b, World Bank says

“Remittance growth was aided by high oil prices ($98 a barrel) and employment opportunities in the construction projects for the FIFA World Cup 2022 in Qatar.”

NL Today

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Kathmandu: Nepal’s remittance inflow is expected to rise to USD 8.5 billion, up from USD 8.2 billion, according to a latest report of the World Bank (WB).

The report entitled ‘Migration and Development Brief,’ shows that remittances to Nepal are expected to increase by 3.6 percent to USD 8.5 billion in 2022, up from USD 8.2 billion in 2021, surpassing pre-pandemic levels. 

The main drivers are an increase in vaccinations and lifting of travel restrictions in the GCC, which is the main destination for Nepali migrants—paired with conducive conditions in the GCC, according to the World Bank. 

“While high global inflation did not spare Nepali households in Nepal, thanks to strong market price support policies in the GCC, Nepali migrants enjoyed low inflation and maintained a steady flow of remittances to Nepal in the year,” it said in the report.

Remittance growth was aided by high oil prices ($98 a barrel) and employment opportunities in the construction projects for the FIFA World Cup 2022 in Qatar. 

Considering the centrality of remittances in the Nepali economy, the government offered an incentive for remittances of an additional one percent in interest on remittance deposits, increased the daily threshold for money remitted from abroad from Rs one million to Rs 1.5 million, and allowed non-resident Nepalese to open foreign currency savings accounts in Nepal.