Kathmandu – With over 2 million Nepalese living abroad, Nepal relies heavily on their remittances. For instance, in 2023, Nepal received around USD 11 billion in remittances, which accounted for more than 26 per cent of the country's gross domestic product, exceeding the combined inflow of official development assistance and foreign direct investment.

Which is why the International Day of Family Remittances (IDFR) adopted by the United Nations General Assembly in 2018 and celebrated annually on 16 June is an important day in Nepal and across the world to recognize the sacrifice and generosity of migrants worldwide.

At present, more than 200 million migrants contribute to the livelihoods of their communities, nations and over 800 million family members through remittances. By 2030, migrants in low- and middle-income countries are projected to send over USD 5 trillion home, predominantly benefiting rural areas, where 80 per cent of the world's poor reside amidst food shortages and climate change impacts.

The 2023-2024 IDFR theme, Digital Remittances towards Financial Inclusion and Cost Reduction, emphasizes the importance of financial digitization in reducing remittance costs and improving financial inclusion. In 2022, 90 per cent of Nepalese adults used various formal financial products, including digital ones, which helped reduce remittance costs to 3.7 per cent, nearing the Sustainable Development Goal (SDG) target of less than 3 per cent.

Despite some progress, Nepal still encounters challenges in achieving universal financial access: rural areas have 50 per cent financial inclusion compared to 60 per cent in urban areas; although narrowed, the gender gap in financial access still persists; high costs for low-amount remittances discourage informal remitters (10.4 per cent of Nepalese adults) from using formal channels; and limited digital and financial literacy leads to distrust in financial institutions and lower retention of remittances in banks.

To mark IDFR 2024, the International Organization for Migration (IOM) and the International Fund for Agricultural Development (IFAD) held an event attended by over 100 people, including representatives from government and financial institutions.

Helene Fors, IOM Nepal Chief of Mission, echoed IOM Director-General’s statement on the importance of remittances for essential needs and reaffirmed IOM's commitment “to supporting the implementation of the Global Compact for Safe, Orderly and Regular Migration (GCM) objectives in Nepal, including Objective 20 focusing on promoting faster, safer and cheaper transfer of remittances and fostering migrants’ financial inclusion.”

Officials from the Ministry of Labour Employment and Social Security and the Ministry of Industry, Commerce and Supplies emphasized leveraging the skills of returning migrant workers and improving digital financial inclusion for formal remittance transfers.

Panel discussions focused on promoting financial inclusion through remittances, government and private sector initiatives to improve formal financial access, and the significance of remittances for rural communities.

Moreover, IOM’s Head of Research Marie McAuliffe presented the newly-published World Migration Report 2024, alongside key migration trends and the developmental impact of remittances for Nepal.

The IDFR celebration underscores Nepal's ongoing efforts to leverage global migration for sustainable economic advancement and financial inclusion.

For media inquiries please contact: Prajwal Sharma: psharma@iom.int