International migration and remittances are important areas of population
and development. A large number of Nepalese households receive
remittances as a result of labour migration. The remittance has substantial
impact on household income and contributes significantly in country’s
economy. Use of remittance on household consumption and education has
become the major determining factor of increased welfare of Nepalese
households. It has supported to alleviate the national poverty to some
extent and has also increased government’s revenue collection. However,
the remittances received is yet to be invested in productive sector, such as
manufacturing, tourism, hydropower, infrastructures and in new
technologies. The government needs to adopt an investment friendly policy
for encouraging people to invest in productive sectors to create more
jobsand to retain working age population within the country.