Kathmandu – Remittance, a major pillar of Nepal’s economy, tends to surge during the festive months of Dashain and Tihar compared to other times of the year. Nepali migrant workers living abroad send increased amounts of money to their families between July and October (Shrawan, Bhadra, and Ashoj) in preparation for the country’s biggest festivals.

According to Nepal Rastra Bank (NRB) data for the fiscal year 2081/82, remittance inflows reached NPR 1.37 trillion in Shrawan, NPR 1.26 trillion in Bhadra, and NPR 1.44 trillion in Ashoj. During the entire fiscal year, total remittance inflows amounted to NPR 17.23 trillion — meaning roughly NPR 4 trillion, or nearly one-fourth, arrived within just these three months.

Remittance contributes about 27 percent of Nepal’s GDP, making it one of the country’s most critical economic drivers. Economist Dr. Chandramani Adhikari explained that remittance inflows rise during these months because of increased spending on goods and services during major festivals. “Expenses rise during Dashain and Tihar for family gatherings, travel, gifts, and feasts. Migrants send a larger portion of their income home to support these costs,” he said.

NRB’s data shows that in the previous fiscal year 2080/81, Nepal received NPR 14.45 trillion in remittance.

However, Dr. Adhikari cautioned that while higher remittance inflows strengthen the external sector, they are not a sign of long-term economic prosperity. “A growing remittance inflow doesn’t necessarily mean the economy is healthy,” he noted. “Remittance provides short-term relief, but for sustainable growth, Nepal must focus on exports, tourism, and attracting foreign investment. Current trends encourage dependency rather than productivity.”

The seasonal surge in remittance also stimulates local trade and business activity. Demand for clothing, food, gold, silver, and other consumer goods rises sharply, energizing local economies. Yet, economists warn that excessive reliance on remittance poses long-term risks to economic development.

Economist Gyanendra Adhikari observed that because remittance inflows are scattered and largely uncoordinated, their positive effects on the broader economy remain limited. “Since Nepal cannot produce enough goods domestically, the remittance money flows in through one pipeline and quickly flows out again through imports,” he said. “Only clear and action-oriented government policies can help Nepal harness the real benefits of remittance. Structural economic reforms are needed to convert remittance into long-term gain.”

Data from the National Statistics Office reveals that about 77 percent of remittance entering Nepal is spent on household consumption, leaving only 23 percent for savings or investment. During the Dashain-Tihar season, this consumption ratio rises even further.

According to the Household Living Standards Survey (FY 2079/80), out of every NPR 100 received in remittance, nearly NPR 77 is consumed, with only NPR 23 saved or reinvested. Meanwhile, customs data shows that more than NPR 1.43 trillion was spent on imports in just the first month of the current fiscal year.

Remittance companies also contribute to the seasonal rise by offering special festive promotions during Dashain and Tihar. NRB data shows that during FY 2080/81, remittance inflows stood at NPR 1.16 trillion in Shrawan, NPR 2.28 trillion in Bhadra, and NPR 3.65 trillion in Ashoj — totaling about half the annual remittance inflow within just three months.

Similarly, in FY 2079/80, remittance inflows reached NPR 92.21 billion in Shrawan, NPR 187.04 billion in Bhadra, and NPR 281.5 billion in Ashoj. Out of the total NPR 12.20 trillion received that fiscal year, more than NPR 5 trillion arrived in just the first quarter.

The pattern is clear: as Nepali migrant workers send money home for festival expenses, remittance inflows surge, making the Dashain-Tihar period the most financially active season for both households and businesses across the country.