Nepali Students Spent Rs 138.48 Billion for Overseas Education, Far More than the Country Earns from Tourism

Despite Nepal welcoming over 1.14 million foreign tourists in fiscal year 2024/25, the money the country earned from tourism remained far less than what Nepali students spent for education abroad, according to the latest report of Nepal Rastra Bank (NRB).

The Current Macroeconomic and Financial Situation Report published by the central bank on Sunday revealed that Nepal earned Rs 88.66 billion from foreign visitors under the service account during the review year — a 7.7 percent rise from Rs 82.33 billion a year earlier.

The NRB classifies this heading as travel income, representing the money foreign tourists spend inside Nepal.

However, travel payments — the amount Nepalis spent abroad for purposes such as tourism, education, and medical care — soared 18.1 percent to Rs 223.72 billion in the same period. A staggering Rs 138.48 billion, or over 60 percent of these payments, was spent solely on education abroad, up from Rs 125.13 billion the previous year.

This means Nepal spends more than one and a half times the total income from foreign tourists just on sending students overseas. Despite the adequate universities and colleges in the country, families continue to invest heavily in foreign degrees, draining valuable foreign currency reserves.

As a result, the net services income remained at a deficit of Rs 90.94 billion in 2024/25, up from Rs 55.86 billion a year ago.