Nepal saw Rs 209 billion flow out of the country for foreign education and travel in fiscal year 2025/26, reflecting the growing number of Nepalis pursuing studies and travelling abroad.
According to a report released by the Ministry of Finance, Nepalis spent Rs 141 billion on overseas education and Rs 67.18 billion on foreign travel during the fiscal year 2025/26 (2082/83).
During the same period, Nepal earned Rs 90.05 billion from foreign visitors, while Nepalis spent Rs 119 billion abroad under the broader travel category. The figures indicate a substantial outflow of foreign currency as international education and travel continue to expand.
The rising number of students seeking higher education abroad and growing demand for international travel have contributed to the increase in spending. The trend reflects changing lifestyles, educational aspirations and expanding economic activity among Nepalis. At the same time, the large outflow has raised concerns over domestic capital mobilisation, the development of Nepal’s education sector and foreign exchange management.
Government data show that 548,717 Nepalis obtained No Objection Certificates (NOCs) to study in 83 countries between fiscal years 2020/21 and 2025/26. During the same period, Rs 556.68 billion flowed out of Nepal for education.
The figures highlight the growing tendency among young Nepalis to seek opportunities abroad for both higher education and employment. Students typically send money overseas to cover tuition fees, accommodation, food, transportation and other living expenses.
Quality education, better employment opportunities and international exposure remain among the major factors encouraging students to study abroad. Some eventually enter the labour market in their destination countries and later contribute to Nepal’s economy through remittances.
Meanwhile, remittance inflows rose 37.1 percent to Rs 2.363 trillion in fiscal year 2025/26, following a 19.2 percent increase in the previous fiscal year. Nepal received Rs 242.33 billion in remittances in the final month of 2025/26, up from Rs 189.11 billion during the corresponding month a year earlier.
During the last fiscal year, 406,414 Nepalis received final labour permits for new foreign employment, while 385,789 obtained renewed labour permits. In the previous fiscal year, the corresponding figures were 505,957 and 333,309, respectively.
Foreign travel spending rises
Nepalis spent Rs 67.18 billion on overseas travel during the last fiscal year, with foreign holidays becoming increasingly popular.
India, Thailand, the United Arab Emirates, Malaysia, Singapore, China and Japan are among the popular destinations for Nepali travellers. Thailand, Dubai and Malaysia have attracted particular interest due to relatively affordable and accessible travel packages.
Package tours to Southeast Asian destinations have also become increasingly popular. Many Nepalis travel to India for religious and cultural purposes, while others travel abroad for education, training and business.
Rising household incomes, partly supported by remittances from migrant workers, have increased the ability of Nepali families to spend on international travel. Travel agencies have also introduced affordable five- to seven-day packages to destinations such as Thailand, Malaysia and Dubai.
According to Nepal Rastra Bank, travel expenditure covers a wide range of expenses, including air tickets, hotels, food, local transportation, shopping and entertainment. Spending at casinos, entertainment centres, shopping malls and other tourism-related activities is also included under travel expenditure.
Expenses incurred by companies to send employees abroad for short-term training, conferences, exhibitions and business meetings are likewise recorded as travel expenditure under the services account.
