Remittances sent by Nepalis outside the country have also set a new record in May. According to the monthly report published by the National Bank on Tuesday, only 1 trillion 76 billion 300 million rupees of remittances have been received in May last year. Earlier, most remittances were 1 trillion 65 billion 30 billion rupees in May, 1 trillion 51 billion rupees in February and 1 trillion 44 billion rupees in October.

In the last eleven months (from July to May), 15 trillion 32 billion 93 crore rupees have been received through remittance. This is an increase of 15.5 percent compared to the same period last financial year. By May of the last financial year, remittances of 13 trillion 27 billion rupees were received, and the growth rate was 16.9 percent. Last May, remittance inflow in US dollars increased by 12.7 percent and reached 11.25 billion. In the same period last year, such flow increased by 15.2 percent.

In recent months, many Nepalis have gone to neighboring countries, including Europe, and remittances have started to increase after money started coming from there, said Chandra Tandon, the former president of the Nepal Dispersal Association. "Now the number of Nepalis in Europe has increased, more remittances have come from Korea, Japan and other countries than in the past, and they have also come from Malaysia, Qatar and other countries like in the past," he said. Due to these reasons, remittances coming to Nepal have increased in the last few months. He estimates that remittances will increase even more in the coming days as the economy of the mentioned country is improving and the number of Nepalis going abroad is also increasing. 

Data also show that remittance inflows have also increased due to the increase in youth migration. In the last eleven months, 452 thousand 324 people have taken final work permit (institutional and individual-new) and 3 lakh 8 thousand 67 people have taken work permit again for foreign employment. This is more than last year. In the eleven months of the last financial year, 421 thousand 356 people took the final work permit and 261 thousand 210 people took the work permit again. 

Even if you look at the data of a decade, it seems that remittances have increased every year. In the financial year 2071/72, 6 billion remittances were received, and by 2077/78, it reached 9 trillion 71 billion rupees. According to the data of Rashtra Bank, in the financial year 2078/79 remittances reached 10 trillion 7 billion rupees, in 2080/81 it reached 14 trillion 45 billion rupees.

Although there is no expected improvement in the main sources of foreign exchange earnings including exports, tourism, foreign investment, the external sector of the overall economy is becoming stronger as remittances continue to increase. The economic and financial report of Rashtra Bank last May showed that external indicators such as foreign exchange reserves, current account, etc. are becoming stronger.

But economists say that we should not be happy just because remittances have increased. Economists allege that the government is complacent because remittances have increased without making any effort to make the economy run. The external sector of the economy has become stronger, not because of us but because foreign economies are doing well.

Apart from remittances, there are no other indicators of the economy that are good. Experts suggest that there is no reason to be happy that remittances have increased when the deadlock in the economy has not ended, economic activity has not become viable, credit flow has not increased, and there has been no expected improvement in government finances including revenue and capital expenditure. 

With remittances, the country's foreign exchange reserves have been making continuous records for the past 33 months. Last May, such reserves reached 25 trillion 69 billion 38 billion rupees. This is an increase of 25.9 percent compared to last June. 

In eleven months of the current financial year, the country's foreign exchange reserves have increased by 5 trillion 28 billion 29 billion. At the end of June 2081, the total foreign exchange reserves were 20 trillion 41 billion 10 million rupees. "Such reserves were 15.27 billion US dollars at the end of June 2081, and increased by 22.2 percent to 18.65 billion US dollars at the end of last May," said the report of the National Bank.

National Bank claims that the foreign exchange reserves held by the banking sector will be enough to support 17.6 months of goods imports and 14.7 months of goods and services imports based on the import of up to 11 months of the current financial year. In the current financial year, the National Bank has set a target of maintaining at least 7 months worth of foreign exchange reserves.

Nepal Rastra Bank Spokesperson Kiran Pandit said that while the external economy is continuously getting stronger, the indicators of the internal economy have also started to improve in recent months. "Looking at the indicators, it seems that the economy is slowly returning to the rhythm," he said, "The deposit growth rate is good, while credit flow has also improved." During the same period of the last financial year, the current account was in surplus by 2 trillion 38 billion and the current account was in surplus by 4 trillion 25 billion. Despite high remittance inflows and record foreign exchange reserves, the economy as a whole is not doing well. The report pointed out that the expected improvement in capital expenditure, revenue collection and foreign aid and grant collection has not been achieved.

In the last 11 months, 11.9 billion foreign direct investment (equity only) has come in. This is an increase compared to the same period last year. Until June 081, such foreign investment was 8 billion 24 million. Similarly, the market price increase rate (inflation) of goods purchased by the general public is an average of 2.72 percent last May. This growth rate was 4.17 percent in the same month last year. Compared to last May, the rate of price increase has decreased in May. 

Last May, the price increase of food and beverages group increased by 0.54 percent and that of non-food and services by 3.94 percent only. In May last year, the price increase of these groups was 5.85 percent and 3.07 percent respectively. In the review month, under the food and beverage group, the price increase of ghee and oil sub-group increased by 10.06 percent, non-alcoholic beverages by 5.13 percent, fruits by 3.51 percent and pulses and pulses by 2.85 percent. However, the price increase of vegetables sub-group increased by 7.04 percent, maramsala by 3.06 percent and fish and meat by 2.91 percent, according to the report of Rashtra Bank. Similarly, within the non-food and service group, the price increase of miscellaneous goods and services sub-group increased by 9.43 percent, clothing and footwear by 6.82 percent, education by 5.88 percent, furniture and household appliances by 5.06 percent, and tobacco by 4.68 percent.