The impact of international university degrees in Nepal

The history of higher education in Nepal began with Transnational Education. Tri-Chandra Campus, established with the aim of providing higher education, commenced its academic journey in 1918 under the affiliation of Patna University, India. Thus, foreign universities were already present in Nepal 41 years before the establishment of the country’s oldest university, Tribhuvan University. In this regard, Tri-Chandra was not only Nepal’s first college but also the first institution to offer foreign university degrees. Following its example, several other institutions such as Padma Kanya Campus, Patan Campus, Nepal Law Campus, Morang Campus, and Mahendra Ratna Campus operated under affiliation with Patna University.

To properly manage institutions affiliated with foreign universities, the government introduced the Directive for Operating Higher Education Under Foreign Institutional Affiliation, 2059. To make this directive more contextual and effective, task forces were formed in 2018 and 2020 to submit updated reports.

29,500 students currently enrolled

According to the Ministry of Education, Science and Technology, 88 colleges and educational institutions in Nepal are currently operating academic programs under the affiliation of foreign universities. Among them, 59 institutions offer undergraduate and postgraduate programs, others provide A-Level and equivalent courses. Data from the International Education Providers Association Nepal (IEPAN) reveals that 29,500 students are currently enrolled in these institutions, making them the third-largest after Tribhuvan University and Pokhara University. These institutions have increasingly focused on market-demanded subjects such as Information Technology, Cybersecurity, Management, Animation, and Hospitality making them popular among students.

University rankings

Nepal’s regulations state that partner universities should ideally be ranked within the top 1000 in globally recognized rankings such as Times Higher Education and Shanghai Jiao Tong. Nepal has two universities featured in the 2025 Times Higher Education World University Rankings: Kathmandu University and Tribhuvan University, both ranked in the 1,500+ category. However, 33 of the foreign-affiliated universities in Nepal fall outside these global rankings. Clause 2 of the directive allows a loophole: if a university is not ranked but maintains quality, it can still be accepted based on submitted evidence. This has led to an influx of low-ranked or unranked universities without mandatory quality assessment, signaling a need for stronger regulatory action. Despite amendments to the directive, gaps still exist. Some institutions have been found to offer misleading information during admissions, provide degrees from different universities than advertised, operate without proper affiliation, and employ underqualified faculty. Such practices compromise consistency in teaching methods and educational quality.

Study in Nepal

Currently, around 12 percent of students at Kathmandu University are international. As the Nepalese government envisions making Nepal an educational hub, institutions offering foreign degrees within Nepal must not be overlooked. During the past 29 years, Nepal’s private sector has been instrumental in developing higher education through partnerships with international providers. While Transnational Education has had a positive impact on Nepal’s education sector, it has yet to mature sufficiently to address broader socio-economic disparities—differences in educational access between urban and rural areas, and persistent gender-based inequalities that still remain. Improving academic quality is essential for Nepal to become a preferred destination for international students. As countries like Australia, the UK, and Canada face economic challenges and ease student visa processes, Nepal has the opportunity to offer a more stable long-term study environment.

The urge to go abroad

According to recent statistics from the Foreign Study Permit Branch in Sanothimi, 464,777 students have obtained permission to study abroad over the past six years (since 2018/19). Nepal Rastra Bank reports that this outflow of students has led to a capital flight of Rs 382.11bn. The branch notes that the number of students applying for a No Objection Certificate (NOC) is rising, with around 600 applications submitted daily. On average, each student spends about Rs 1.3m for foreign studies. In just the first 11 months of 2023/24, students going abroad spent Rs 117.58bn.

While billions are leaving the country, aggressive marketing campaigns by colleges offering undergraduate programs are underway in Nepal, especially with the recent announcement of Class 12 examination results. Foreign-affiliated colleges are introducing new programs, increasing confusion among students. Some institutions have even been operating A-Level, International Baccalaureate (IB), CBSE, and similar programs without government authorization. The Ministry issued a notice cautioning parents against enrolling their children in such institutions and warned of legal actions—though no substantial action has been taken so far, leading to a decline in public trust.

Opportunities within Nepal

According to the 2024 report by the expert committee formed to study foreign-affiliated institutions, these colleges have played a role in curbing student outmigration. By offering foreign degrees within Nepal, an estimated Rs 60bn has been saved from leaving the country. More than 7,500 students have received full or partial scholarships, and over 7,000 individuals have been directly employed, with another 15,000 benefiting indirectly.

Education budget

Despite repeated commitments from political parties and successive governments, the education sector has received only 10.75 percent of the total national budget. Finance Minister Bishnu Paudel allocated Rs 211.17bn to the Ministry of Education, Science, and Technology for the current fiscal year, which is a 0.2 percent decrease from the previous year’s budget of Rs 266bn. This indicates the need for qualitative improvement in education. If the government cannot significantly increase investment, it should provide more opportunities to the private sector while strictly enforcing standards and regulations.

Provisions in other countries

In India, foreign universities are allowed to establish local campuses. In May of 2025, the University Grants Commission of India granted permission to five foreign universities to open campuses in the country, in alignment with the new 2023 regulations and the National Education Policy 2020. These universities have already submitted letters of intent and aim to begin student admissions by Dec 2026. So far, nine foreign universities have registered with the Indian UGC, and three of them have already established campuses. This initiative aims to provide access to high-quality global education within India, save on foreign education expenses, and promote an international academic environment locally.

Similarly, Sri Lanka currently hosts 66 colleges affiliated with UK and Australian universities. In Bangladesh, several colleges operate in partnership with universities from the UK, Australia, and Malaysia. However, Pakistan and the Maldives have not actively promoted Transnational Education (TNE).

The author is teacher at The Westminster College