Every day, Nepalese working abroad send home Rs 4.72 billion, amounting to Rs 1.72 trillion over the past fiscal year—an amount that rivals the national budget and underscores their crucial role in sustaining Nepal’s economy. These contributions have long been the backbone of Nepal’s economic stability, helping families, communities, and the national financial system thrive.
Remittances remain a cornerstone of Nepal’s economic development. In 2023, inward remittances surpassed USD 11 billion, representing roughly 26.6% of GDP—a figure that exceeds the combined inflows from official development assistance and foreign direct investment. According to mid-May data for fiscal year 2024/25, remittance receipts climbed to NPR 1,356.6 billion, up from NPR 1,198.6 billion the previous year, marking a notable increase of nearly NPR 158 billion.
With Nepal’s nominal GDP estimated at around USD 50 billion in 2025, these figures highlight the indispensable role of migrant workers. Remittances contribute not only to household consumption but also to foreign currency reserves, national savings, and financial sector stability, strengthening Nepal’s overall economic structure.
The Gulf region—including the UAE, Qatar, Saudi Arabia, and Kuwait—remains one of the most trusted employment destinations for Nepali workers. These countries provide opportunities in construction, hospitality, healthcare, and other sectors. Their growing economies and modern infrastructure create reliable and sustainable avenues for Nepali migrants to earn higher incomes, which are then invested back home.
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The UAE, in particular, stands out for its safe working conditions, modern facilities, and strong bilateral relations with Nepal. Its continued collaboration ensures that migrant workers enjoy a secure and productive working environment while contributing significantly to Nepal’s economy.
The United Arab Emirates has set a benchmark for migrant welfare globally. Progressive labor reforms, including mandatory insurance policies, Wage Protection Systems, and strict health and safety standards, ensure that workers are supported in their professional environments. Initiatives such as Expo 2020 Dubai created diverse employment opportunities for skilled and semi-skilled workers, while digital salary transfers and free legal assistance programs further demonstrate the UAE’s commitment to fair and transparent treatment of migrant labor. These measures strengthen trust and make the UAE a responsible and forward-looking partner in global labor mobility.
Remittances have significantly transformed both rural and urban areas. In many villages, newly constructed modern homes—built using funds sent by family members working abroad—symbolize the rising living standards made possible through overseas employment. Families use remittances to invest in education, healthcare, small businesses, and community development projects, stimulating economic growth at multiple levels.
According to national statistics, 61% of households receive remittances from abroad. This steady inflow reduces poverty rates and ensures that families in remote areas can access essential services, creating a more equitable distribution of resources and opportunities.
Although women constitute a smaller proportion of migrant workers, their contributions are especially transformative. Nearly 45% of women’s remittances are directed toward essential household expenses, including education and healthcare. This focused investment not only improves household well-being but also advances gender equity and social development across communities.
The use of formal financial channels—including banks, remittance companies, and digital platforms—has increased significantly, making transfers safer and more transparent. Nepal’s integration with India’s Unified Payments Interface (UPI) in 2024 has further streamlined cross-border remittances, ensuring faster, more secure, and cost-effective transactions. This modernization benefits both senders and recipients, contributing to stronger economic planning and financial management.
While migrant workers provide the economic backbone, policymakers play a critical role in ensuring that their contributions translate into sustainable national development. Governments must ensure safe and legal migration, promote skill development to enhance employability, facilitate financial literacy and inclusion for the wise use of remittances, encourage productive investment in infrastructure, businesses, and social projects, and strengthen bilateral agreements with host countries to protect workers’ rights. By addressing these responsibilities, policymakers can maximize the social and economic benefits of migrant labor while safeguarding workers’ well-being.
Migrant workers are more than just a source of income; they are economic ambassadors, connecting Nepal to the wider global economy. Their contributions enhance national savings, bolster foreign currency reserves, and increase household spending, which collectively stimulate economic growth. By ensuring a consistent flow of remittances, these workers indirectly support infrastructure development, education, healthcare, and overall social progress.
Nepali migrant workers—whether constructing infrastructure in the Gulf, working in hospitality in the UAE, or contributing to healthcare sectors—are the unsung heroes of Nepal’s economy. In every remittance sent, they deliver not only money but also hope, stability, and opportunity.
Recognizing their efforts and fulfilling policymakers’ responsibilities through safe migration, financial inclusion, and the productive reinvestment of remittances is critical for sustaining Nepal’s economic growth. By valuing and supporting these workers, Nepal not only secures its present but also invests in a more prosperous future.
(The author is the Media Researcher at UAE Embassy in Kathmandu.)
