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Remittance Growth Declined with Decrease in Migrating Labourers

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Remittance Growth Declined with Decrease in Migrating Labourers
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July 19: Along with the decrease in migrating labourers, growth rate of remittance has also decreased. In 11 months of the last FY 2072/73, remittance flow has increased by 8.6 percent which is less than the previous FY 2071/72 which was 12.4 percent.

Specifically, decrease in labourers going to Gulf countries by 20.6 percent has attributed the decrease in growth of remittance flow. In the review period of the last FY, total of 386,315 foreign jobseekers left the country. In the previous year, the number was 486,287. Decline in the price of crude oil in the international market that led Gulf Countries to cut off number of labourers is also a primary reason of decreasing remittance growth. Additionally, due to the devastating earthquake of last year, labourers going abroad for job has also significantly dropped attributing decline in remittance flow.

However, the annually increasing remittance flow has not been able to use for capital formation. The economic survey of 2072/73 shows that the 94.74 percent of remittance is spent for consumption. Most of the labourers going for foreign jobs are of weak economic background, thus capital formation lies least in their priority. 

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