ABSTRACT
Political instability, staggeringly slow and unsteady pace of economic growth and development have been overarching problems in Nepal. Yet, poverty declined from as high as 41.8 percent in 1995/96 to 25.2 percent in 2010/11. Labour migration of thousands of youth, mainly to countries in the Middle East and Malaysia, is mainly attributed to this reduction in poverty rates. Remittances are often the sole sources of income for migrant households, and remittance inflow has resulted in increased the consumption capacity of migrant households, investment in children’s education, land and property and has directly contributed to poverty reduction of migrant households across the country. However, a major challenge remains for migrant households, as well as the government, to channel remittances for sustainable livelihood sources and to prevent migrant households falling back into poverty or to the cycle of migration.
