Nepal's Outflow for Study and Travel Abroad Hits Rs 209 Billion in a Single Year

KATHMANDU, Sept 28 — Nepal witnessed a massive outflow of Rs 209 billion for foreign education and travel in a single fiscal year, underscoring the growing number of Nepalis pursuing studies and holidays abroad.

According to a report from the Ministry of Finance, Nepalis spent Rs 141 billion on overseas education and Rs 67.18 billion on foreign travel in fiscal year 2025/26 (2082/83). In contrast, the country earned Rs 90.05 billion from foreign visitors during the same period, while total spending abroad under the broader travel category reached Rs 119 billion.

The surge is driven by a rising number of students seeking higher education overseas and an increasing preference for international travel, reflecting changing lifestyles, educational aspirations, and economic activity. However, the large outflow also raises concerns about domestic capital mobilisation, the development of Nepal's education sector, and the management of foreign exchange reserves.

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 a growing trend among young Nepalis to go abroad not only for higher education but also for employment opportunities. Students initially take money from Nepal to cover university tuition, accommodation, food, transportation, and other expenses. Quality education, better employment prospects, and international exposure remain major pull factors. Some students later enter the workforce abroad and send remittances back to Nepal after completing their studies.

Meanwhile, remittance inflows increased by 37.1 percent to Rs 2.363 trillion in fiscal year 2025/26, up from a 19.2 percent rise in the previous fiscal year. In the final month of 2025/26 alone, Nepal received Rs 242.33 billion in remittances, compared with Rs 189.11 billion in 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 year, the corresponding figures stood at 505,957 and 333,309.

Foreign Travel Spending Rises

Nepalis spent Rs 67.18 billion on overseas travel during the last fiscal year, as foreign holidays have become increasingly popular. India, Thailand, the United Arab Emirates, Malaysia, Singapore, China, and Japan are among the most popular destinations for Nepali travellers. Thailand, Dubai, and Malaysia have become particularly attractive because of relatively affordable and easily accessible travel packages.

Package tours to Southeast Asian countries have also gained popularity in recent years. Large numbers of Nepalis travel to India for religious and cultural purposes, while others go overseas for education, training, and business.

Rising household incomes, partly supported by remittances from migrant workers, have increased the ability of many Nepali families to travel abroad. Travel agencies have also introduced affordable packages, including five to seven day trips to destinations such as Thailand, Malaysia, and Dubai.

According to Nepal Rastra Bank, travel expenditure includes spending on air tickets, hotels, food, local transportation, shopping, and entertainment. Spending at casinos, entertainment centres, shopping malls, and other tourism-related activities is also counted under travel expenditure. Expenses incurred by corporate houses for sending employees abroad for short-term training, conferences, exhibitions, and business meetings are similarly recorded as travel expenditure under the services account.