Remittance income has played a vital role in the economic

development of Nepal. According to the Remittance yearly

migration review by the Ministry of Labour Employment and
Social Security (2020), Nepal issued over 4 million labour
permits for the Nepalese who were seeking to migrate for
foreign employment in the past decade
. Nepal received US$8.79 billion in the Fiscal Year 2018–
2019, which accounted for 28% of GDP for that year
Because of the pandemic, millions of workers have lost their
work, income and faced reduction of salary, as businesses
and economic sectors, especially smaller enterprises, have
been severely affected.
According to the Nepal Association of Foreign Employment
Agencies, the global COVID-19 pandemic has taken away the
Nepalese migrant workers’ jobs in the Persian Gulf and
Malaysia, which are Nepal’s top labour destination countries
About 20%–25% of the estimated 3 million Nepalese workers
abroad are likely to return home, mainly because of two
reasons: first, the work tenure of about 60 %of the Nepalese
workers is over and, second, a large number of workers have
lost their jobs due to the pandemic
Data of Nepal Rastra Bank, Nepal living standard survey and
the World Bank show the inflow of remittance to Nepal from
0.99 to around 32% of GDP of Nepal in between 1993 to
2019.
The inflow of remittance as the ratio of country’s GDP Nepal
comes in first rank in the South Asia and due to Covid 19 the
rehion was expected to lost inflow of remittance by 22%.

According to the World Bank the remittance inflow to Nepal

was 8.1 billion US$ and accounted 27.3 % of GDP of Nepal.
If we consider the rate of decline Projected by the World
Bank, the amount of remittance to Nepal in 2020 was 6.966
billion US$, lowest in past years.
According to data of Nepal Rastra Bank , in the first eight
months of fiscal year 2019/20, Nepal has received Rs 592.42
(5.2 billion USD) billion and which is 1.8 percent as
comparison to the same time of period of previous year.
(Graph shows the downfall of remittance of Nepal during the
time period of covid-19)
(Graph shows the time duration between 2018 to early
2021)
Remittances from Nepali workers abroad have continued to
defy expectations. They have risen to Rs729.02 billion, a
16.5% increase from the same period last in 2018/2019,
according to a nine-month update report by the Nepal Rastra
Bank (NRB).

In year 2019/2020, remittances fell by 4%. In the immediate

months after the lockdown, there had been a drop from
Rs79.3 billion in March 2020 to Rs34.5 billion and Rs54 billion
in April and May 2020 respectively. But in 2021, Nepal
received Rs86.8 billion in April alone.