Nepal sees Rs 864 billion outflow in five years as Nepalis go abroad

Nepal experienced an outflow of Rs 864.05 billion over the past five fiscal years, from 2078/79 to 2082/83, according to recently released data from the Ministry of Finance. A substantial portion of this amount was taken by Nepalis traveling abroad for various purposes, with students pursuing overseas education accounting for the largest share.The outflow was lowest in fiscal year 2078/79 at Rs 97.32 billion. The highest outflow occurred in fiscal year 2081/82, reaching Rs 223.71 billion. In fiscal year 2082/83, the outflow was Rs 209.10 billion.The Ministry of Finance’s data details the annual outflow figures:Fiscal year 2078/79: Rs 97.32 billionFiscal year 2079/80: Rs 144.47 billionFiscal year 2080/81: Rs 189.43 billionFiscal year 2081/82: Rs 223.71 billionFiscal year 2082/83: Rs 209.10 billionThis trend highlights the increasing financial impact of Nepalis seeking opportunities abroad, particularly in education.Despite the capital outflow, Nepal’s remittance inflows have shown robust growth. In the first two months of the current fiscal year 2083/84 (Shrawan and Bhadra), Nepal received Rs 436.36 billion in remittances, marking a 23.9 percent increase compared to the same period last fiscal year. Specifically, in Bhadra alone, remittances totaled Rs 221.31 billion.As of Bhadra 2083, Nepal’s total foreign exchange reserves reached Rs 4065.78 billion. Nepal Rastra Bank, the central bank, stated that these reserves are sufficient to cover 20.9 months of goods imports and 17.8 months of goods and services imports.The number of Nepalis seeking foreign employment continues to rise. In the first two months of the current fiscal year, 78,320 Nepalis obtained final labor permits (institutional and individual new) for overseas employment, while 52,163 renewed their permits.Meanwhile, Nepal’s total foreign trade in fiscal year 2082/83 amounted to Rs 2411.66 billion. Imports stood at Rs 2096.37 billion, and exports were Rs 315.29 billion, resulting in a trade deficit of Rs 1781.08 billion.The annual point-to-point consumer inflation rate was 6.34 percent as of Bhadra 2083. Madhesh Province recorded the highest inflation at 7.48 percent. This province also faces significant challenges in providing adequate employment opportunities, leading a large number of its youth to seek work abroad. According to the Department of Foreign Employment, 99,218 youths from the eight districts of Madhesh Province obtained labor permits for foreign employment in fiscal year 2079/80. Including those who renewed their permits, the total reached 181,613.The Constitution of Nepal encourages sending Nepali citizens for foreign employment to bring in foreign currency, technology, and skills. However, the current periodic plan aims to create sufficient domestic employment opportunities to end the compulsion of foreign employment.While a significant portion of the outflow is attributed to students, detailed statistics on the specific countries and amounts are not yet clear. The exact number of Nepalis going abroad is also ambiguous, as the Department of Immigration counts each trip even if made by the same individual multiple times. The current Speaker of the Legislature Parliament is also not specified in the available information.