Kathmandu, December 20
People believe remittances from Nepal’s migrant workers in various nations, which amount to billions of rupees every month, to be a vital backbone of the country’s economy. As a result, there are various ideas in the works to put the money to good use.
But here’s the bad news: according to government records, roughly 92 percent of remittances are spent on individual and household expenditures, as well as refinancing loans. It signifies that only 8% of the money has been converted into capital.
Although the government does not have exact figures on how much remittance money is spent on certain sectors, the Foreign Employment Board states that 92 percent is spent on individual and household consumption, while the remaining 8% is saved or invested in enterprises, according to a poll.
The following is the breakdown of consumption:
Repaying loans: 21.9 percent (outbound flight loans: 14.6 percent + other loans: 7.3
percent)
16.1% of daily home consumption
15.5 percent of the population is concerned with health and medication.
13.6 percent of the population is educated.
Housing and real estate make up 12% of the total.
9 percent of the time is spent on celebrations and jewelry.
4.8 percent for high-end items
Similarly, the breakdown on the productive side is as follows:
5.7 percent savings
2 percent for businesses
By Karuna Thapa
