If the large amount of money coming in in the name of remittances can be linked to large projects with guaranteed benefits, their construction can be completed quickly, returns can be obtained quickly and they can bring a big change in the economic development of the country.
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The remittances sent by Nepalese migrants are becoming a strong base of the country's economy. Also, remittances have almost tripled in a decade. For example, in the financial year 2071/72, 6.5 trillion remittances have reached 1.7 trillion rupees in 2081/82.
Remittances broke records in the last three months of 2081/82. And a record is being made every month. 1 trillion 65 billion, 1 trillion 76 billion and 1 trillion 89 billion remittances have been received in Baisakh, May and June 2082 respectively. Remittances have provided a great support to the education, health, and daily needs of Nepali families. Remittances from ordinary families to the country have been limited to self-interest.
It has not been able to give a qualitative leap to the Nepalese economy. There is a delay in making and implementing a creative policy by the state for the organized utilization of remittances.
The number of Nepalis going for foreign employment is increasing. Educated and literate people with skills have also improved their income when they go for foreign employment. The access of Nepalis to the labor market which has relatively higher income such as America, Japan, Australia, Korea and Europe has increased. Similarly, due to the increase in financial literacy and convenience, the use of the banking system to send money has increased, while the value of the dollar has also increased, and the size of the amount received through remittance has also increased.
There has not been much improvement in the main sources of foreign exchange earnings including exports, tourism, foreign investment. However, the external side of the economy has been strengthened by rising remittances. Last year's economic and financial report of National Bank showed that external indicators such as foreign exchange reserves, current account, etc. are getting stronger. Foreign exchange reserves have been continuously making records for the past 34 months. Currently, the country's foreign exchange reserves have reached 26 trillion 77 billion 68 billion rupees. Taking the imports of the financial year 2081/82 as the basis, the foreign exchange reserves held by the banking sector are sufficient to cover 18.2 months of goods imports and 15.4 months of goods and services imports. Likewise, the current account is in surplus by 4 trillion 9 billion 2 crores and the current account (balance of payments) is in surplus by 5 trillion 94 billion 54 crores.
There has been a lot of debate about how much damage is being done to the country, society and family due to young people of active age going abroad. However, due to the money sent by the members who have gone abroad for employment, the family has been greatly relieved. Many families have been lifted above the absolute poverty line. This means that the children are able to study in relatively good schools. They have access to good health care. have received adequate nutrition. Due to the increased purchasing power, the daily life of the family is becoming easier. Quality of life is getting better. The practice of starting a business here through the use of capital accumulated abroad has increased. The country is also getting revenue due to the trend of buying luxury goods. Overall, the burden of the state on citizens and families has been reduced due to remittances.
On the one hand, record-breaking remittances have come in, on the other hand, there is economic relaxation. Enthusiasm has not been created in the development work. Such remittances have not contributed much to the economic growth rate. The state has not been able to pay attention to its strategic use due to the increased self-esteem of remittances. As it is discussed that there has been a qualitative change in the lifestyle of the family due to remittances, there has not been a significant improvement in the lifestyle of the country. States should always treat remittances as a short-term opportunity.
Therefore, remittances should be used to build capital as quickly as possible, to complete development projects of strategic importance as soon as possible, to create jobs, and to bring in foreign investment. Only such works will increase the production in the country. Exports increase along with production, foreign exchange earnings also increase. As employment, production and exports increase in the country, the compulsion of foreign employment decreases. A strong economy brings forth strong prospects. This is the way to become self-sufficient in a country that relies on remittances. This is the path followed by many countries including South Korea. But we are stuck in a circle of receiving remittances and returning them to the purchase of goods and services. Meanwhile, our development projects are not being completed on time, due to lack of funds for development construction.
Unless remittances are linked to development, they cannot be properly utilised. Therefore, the government needs to make a policy on how to use remittances. It is discussed that there is a lack of budget for hydropower projects, large irrigation projects, roads of strategic importance, tunnels, railways, and airports. Nowadays there is a tendency to look for foreign assistance/loans even for small projects.
Meanwhile, attention has not reached towards the utilization of the large amount of money with the Nepalese. Therefore, if the large amount of money coming in in the name of remittances can be linked to large projects with guaranteed benefits, their construction can be completed quickly, returns can be obtained quickly and they can bring a big change in the economic development of the country. At the same time, they also provide long-term economic benefits to those who have gone abroad for employment.
