Rising number of Nepali students going abroad increases financial outflow

KATHMANDU: The number of Nepali students going abroad for higher education is steadily increasing, leading to a significant rise in the annual financial outflow from Nepal.

This trend is driven by students seeking better opportunities abroad due to limited prospects at home.

According to Nepal Rastra Bank, in the first five months of the current fiscal year (mid-July to mid-December), students received currency exchange facilities amounting to Rs 47.41 billion for studying abroad. In the same period last fiscal year, this figure was Rs 47.34 billion.

Students are provided with foreign currency exchange facilities to pay fees and related expenses abroad. Officials note a consistent rise in the number of students leaving Nepal and the accompanying financial outflow.

In the first five months of fiscal year 2079/80, students took Rs 28.81 billion abroad, while in the previous fiscal year, a total of Rs 125.13 billion was remitted for overseas education, marking a nearly 25% increase from the year before. Over the past two years, such transactions have exceeded Rs 100 billion annually.

To study abroad, students must obtain a “No Objection Certificate” (NOC) from the Ministry of Education. The Ministry of Education, Science, and Technology reports that 200–300 students on average apply for NOCs daily. Popular destinations for Nepali students include Australia, Japan, the UK, Canada, the USA, South Korea, and India.

From mid-July to Jan 17 of this fiscal year, 50,190 individuals obtained NOCs, compared to 43,855 in the same period last year and 42,650 in the year before.

These numbers highlight a steady increase in students pursuing education abroad.

Education expert Susan Acharya attributes the rise to concerns over the quality of services provided by Nepali educational institutions, lack of opportunities post-graduation, unemployment, and high living costs.

“Political instability and limited flexibility in academic choices force students to prepare for foreign education as early as grade 11 and leave immediately after completing grade 12,” she said. She emphasized that foreign institutions allow flexibility in changing fields of study, a system Nepal could adopt to retain students.

Acharya suggested that the government adopt policies encouraging students to pursue higher education in Nepal.

Addressing issues such as political interference in education and delays in examination results is critical to curbing the exodus of students seeking better prospects abroad.