Nepal’s expenditure on foreign travel has risen sharply in the first four months of the current fiscal year, largely driven by increased spending on overseas education, according to the latest macroeconomic report from Nepal Rastra Bank (NRB).
Key Data on Travel and Education Spending:
- Total Travel Payments: Increased by 11.8% to Rs 75.74 billion.
- Education-Related Payments: Accounted for Rs 48.26 billion of this total, representing nearly 64% of all travel expenditures.
- Year-on-Year Comparison: In the same period last year, total travel payments were Rs 67.75 billion, of which Rs 37.77 billion was for education. This indicates a significant rise in outflows for studying abroad.
Impact on Services Account:
While travel income saw a marginal increase of 0.9% to Rs 27.15 billion, it was insufficient to offset the high outflows. Consequently, the net services income deficit widened to Rs 32.91 billion, up from a deficit of Rs 22.37 billion in the same period the previous year. This trend underscores the substantial financial impact of Nepali citizens pursuing education and other activities overseas.
