Rs 556 billion flows out as nearly 550,000 Nepalis head abroad for studies in six years

13 August, 2026

Rby Rauniyar

For hundreds of thousands of Nepali youths, going abroad for higher education has become more than an academic choice. It has increasingly become a pathway to employment, financial security and a better future
Over the past six years, nearly 550,000 Nepalis obtained No Objection Certificates (NOCs) to pursue higher education abroad, while more than Rs 556 billion flowed out of the country for foreign education.

According to data from the Foreign Study Permit Branch under the Ministry of Education, Science and Technology, 548,717 people obtained NOCs to study in 83 countries between fiscal years (FY) 2020/21 and 2025/26.

The number of students seeking permission to study abroad has surged since the COVID-19 pandemic. Only 27,211 people obtained NOCs in FY 2020/21. The figure more than tripled to 91,221 in FY 2021/22 and crossed the 100,000 mark in each of the following years.

The ministry issued 102,295 NOCs in FY 2023/24 and 117,805 in FY 2024/25.

Deputy Secretary Uddhav Shrestha said the upward trend has continued despite the disruption caused by the pandemic.

However, the number of NOCs does not necessarily represent the exact number of students who leave the country. Some individuals obtain multiple NOCs after changing their level of study, subject or destination, Shrestha said.

Japan overtakes Australia

The changing preferences of Nepali students are also reshaping the map of popular overseas destinations.Nepal travel guide

Japan has emerged as the leading destination, overtaking Australia, which had traditionally been the first choice among Nepali students.

Over the five-year period, 156,407 students obtained NOCs for Japan, followed by 127,916 for Australia. The United Kingdom ranked third with 75,927 NOCs, followed by Canada with 42,870 and the Republic of Korea with 33,871.

“This shows that Nepali students’ destinations for foreign education are also changing,” Shrestha told Republica. “In the past, Australia was the primary destination; now, recent data shows that Japan has become the first choice.”

Japan accounted for around 19 percent of total NOCs in FY 2022/23, but its share increased to more than 30 percent in FY 2023/24, according to Shrestha.

The data also shows a gender gap in the number of students obtaining NOCs. More than 300,000 men obtained NOCs during the six-year period, compared with around 250,000 women.

Education comes with a heavy financial cost

The growing number of Nepalis heading abroad has also translated into a substantial outflow of foreign currency.

According to Nepal Rastra Bank data, Nepal spent Rs 25.81 billion on foreign education in FY 2019/20. The amount stood at Rs 24.95 billion in FY 2020/21 before jumping to Rs 67.7 billion in FY 2021/22
Education-related foreign currency expenditure then rose sharply, reaching Rs 100.42 billion in FY 2022/23 and Rs 125.13 billion in FY 2023/24.

It increased further to Rs 138.48 billion in FY 2024/25 before declining to around Rs 100 billion in FY 2025/26.

In total, around Rs 556.68 billion flowed out of Nepal for foreign education during the period.

The figures underscore the growing economic significance of an education migration trend that has become deeply embedded in Nepali society.

Education—or a route to opportunity?

For many students, the decision to leave is not driven by education alone.

Dr Yogendra Bahadur Gurung, a demographer and professor at Tribhuvan University, said a lack of employment opportunities, uncertainty over career prospects, irregular academic calendars, political interference and inadequate skill-based jobs are among the major factors pushing young people abroad.

The opportunity to work while studying overseas has further strengthened the attraction.

At its core, Gurung said, the trend is largely economic.

“The state has not created an environment where youths can become economically empowered,” he said. “Young people are going abroad in the name of education to strengthen their economic status because of the lack of opportunities in the country.”

He stressed that going abroad for education is not inherently a problem. The greater concern, he said, is the absence of opportunities at home that makes young people feel compelled to leave to build a better future.

“Going abroad is not bad; it is about opportunities,” Gurung said. “That is why the social trend of young people going abroad in search of opportunities along with education to build a quality life is on the rise.”

Empty classrooms, crowded consultancies

The effects of the exodus are increasingly visible within Nepal’s own education system.

Colleges and universities, particularly those offering graduate-level programmes, are struggling to attract enough students to run some academic programmes. At the same time, educational consultancies are seeing a steady stream of young people seeking information about studying overseas.

The contrast points to a deeper challenge: while Nepal is producing a growing pool of young people seeking higher education, many are choosing to pursue it outside the country.Nepal travel guide

For Gurung, the question is not whether Nepal should prevent students from leaving but why so many feel that leaving is necessary.

“Should Nepal stop students from going abroad, or should Nepal minimize the pressure to go abroad by creating quality education, employment and future opportunities?” he asked.

He argued that restricting overseas study would not provide a sustainable solution. Instead, Nepal needs to improve the quality of university education, regularize academic calendars, expand employment-oriented programmes, invest in research and strengthen collaboration between universities and industries.

Creating better employment opportunities after graduation, he said, would naturally reduce young people’s inclination to leave the country for education.

The growing flow of students abroad, therefore, is not simply a story about foreign universities attracting Nepali students. It is also a reflection of what Nepal has—and has not—been able to offer its young population at home.

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© Centre for the Study of Labour and Mobility. 2024