Increasing Number of Nepali Students Studying Abroad Leads to Rise in Foreign Currency Outflows
Recent data from Nepal Rastra Bank highlights a noticeable surge in the number of Nepali students opting to pursue higher education abroad. Examining the statistics of the past year, it is evident that this trend is on the rise.
Currently, a growing number of students are choosing to go abroad for further studies, particularly after completing their Plus 2 and Bachelor's degrees. The aftermath of the COVID-19 pandemic has further accelerated this trend. Consequently, a substantial amount of money is flowing out of the country to support these educational pursuits.
According to Nepal Rastra Bank's records, students heading overseas for education carried more than 100 billion rupees out of the country in the last financial year.
What's striking is that even students pursuing foreign education are contributing to significant capital outflows due to their expenditure abroad. This phenomenon is exerting pressure on Nepal's current account deficit. As of the end of the last financial year (Ashad), the current account deficit stood at a staggering 72 billion rupees.
As per data published by Nepal Rastra Bank, students studying abroad withdrew a total of 142 billion rupees from Shrawan to Ashad of the previous financial year. To put this into perspective, in the fiscal year 2078/79, these students took 67 billion 70 million rupees abroad, while in 2077/78, the figure was 24 billion 95 crores rupees.
With the escalating number of students pursuing international education, the outflow of money is witnessing a corresponding increase. Presently, destinations like Australia, America, Canada, Germany, New Zealand, and Japan are preferred choices among Nepali students, further contributing to significant foreign currency outflows.
Not only are educational expenses abroad soaring, but travel expenditures have also witnessed a remarkable increase. In the last financial year, Nepalese spent a staggering 61.52 billion rupees by the end of Ashad, according to data from the National Bank.
Comparatively, travel expenses have spiked by a substantial 89.6 percent compared to the previous year, with a total of 32 billion 44 crores rupees spent on tourism in the preceding year.
This trend underscores the growing financial impact of Nepali citizens seeking international experiences, both in terms of education and leisure travel, necessitating a closer look at the country's economic dynamics.
