Rs 32.76 Billion Outflow as Nepali Students Head Overseas for Higher Education

Nepal witnessed a substantial outflow of Rs 32.76 billion in the first two months of the current fiscal year (2025/26) as students departed abroad for higher education, according to the latest data from the Nepal Rastra Bank (NRB).

The central bank’s Current Macroeconomic and Financial Situation Report shows that the amount spent under the “education services” category increased by nearly 28.8 percent compared to the same period last fiscal year, when outflows had reached Rs 25.44 billion.

The data underscores the growing trend of Nepali youth seeking academic opportunities abroad, particularly in destinations such as Australia, Japan, Canada, and the United States. This persistent rise in overseas education expenditure has become a significant contributor to Nepal’s foreign currency outflow.

During the previous fiscal year (2024/25) alone, total spending by students pursuing education overseas amounted to Rs 162.24 billion, highlighting how tuition fees, living expenses, and associated costs are exerting increasing pressure on the nation’s foreign exchange reserves.

Economists have expressed concern that the trend, while reflecting rising global mobility and educational aspirations, also signals a widening capital flight and brain drain, with limited mechanisms in place to retain skilled human resources or attract remittances linked to educational migration.