Illegal flows of remittance is on the rise: Finance Minister Bishnu Poudel

Nepal’s Finance Minister Bishnu Paudel has acknowledged the rise of illegal flows of remittance, with migrant workers finding it more profitable to send money through the Hundi, an illicit channel.

NL Today

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Kathmandu: At a time when there has been long speculation that Nepal’s remittance inflows have been channelized through illicit routes, Deputy Prime Minister and Finance Minister Bishnu Paudel has remarked in the similar line. 

On Saturday, he said the government is ready for policy-level and legal reforms to further systematize the remittance inflow. 

In his virtual address to a programme entitled ‘Remittance and Investment in Nepal’ organized by the Overseas Nepali Forum, the United States of America, he said the government was ready to create an atmosphere conducive for promoting legal channels for remittance inflow and productive sectors. 

There were speculations that the currency rates on the gray market, also known as Hundi in Nepal, are higher than official exchange rates and migrant workers were opting the informal route to send funds home. 

The Minister said, “We have not been able to receive a large chunk of remittance through an official route and the government is ready to take measures to promote such a channel.”   He presented an idea for utilizing remittance in productive and job creation sectors.    

“The NRNs overseas have made a big contribution to Nepal’s economic development and this is going to be more effective in the coming days,” Finance Minister Poudel said and expressed the confidence that each and every NRN and Nepali living and working overseas would play a constructive role as Nepal’s goodwill ambassador for promoting foreign investment besides sending remittance. 

Reiterating that Nepal is a safe destination for investment and also a place with returns prospective, he urged the NRNs to share this message among the investors across the globe.

The programme participants underscored that remittance has played a significant part in the national economy. They suggested giving emphasis on agriculture, tourism, energy, infrastructure, human resources, industrialization, service sector, social security, among the sectors for boosting Nepal’s economy.