Despite a network of universities and educational institutions within the country, Nepal faces a significant and growing outflow of capital as students pursue degrees overseas. Recent data from Nepal Rastra Bank (NRB) reveals that expenditure on foreign education surged to Rs 42.96 billion in the first four months of the current fiscal year.
This marks a sharp increase from the Rs 32.22 billion spent in the same period the previous year, representing a near Rs 10 billion rise in educational spending abroad.
This trend is a major contributor to the nation’s travel expenditure under the services account, which grew by 16.4% to Rs 64.59 billion. While travel income also saw an 8.1% increase to Rs 19.19 billion, the net result is a widening deficit. The net services income deficit expanded to Rs 32.68 billion, up from Rs 23.01 billion a year earlier, underscoring the substantial financial impact of students studying abroad.
