KATHMANDU, June 10: As the number of Nepali students pursuing higher education abroad continues to rise, the education consultancy sector has expanded rapidly. However, concerns have emerged over weak regulation, investment security, and service quality in the industry.
At present, 760 education consultancies registered with the federal Ministry of Education and Sports and 522 registered under provincial social development ministries are in operation.
According to Rajendra Baral, these institutions provide guidance to students seeking to study medicine, engineering, law, chartered accountancy, nursing, and other disciplines abroad.
"The private sector has invested more than Rs 18 billion in this industry, which has created employment for around 35,000 people," Baral said. "But the state has failed to guarantee the security of our investments."
Recently, the Education Ministry sent a list of consultancies that had not renewed their registrations to the Ministry of Home Affairs, prompting authorities to begin enforcement measures. The Home Ministry said police have raided 95 consultancies and initiated legal action against them.
According to Semanta Raj Koirala, undersecretary and chief of the Education Consultancy Branch at the ministry, 924 consultancy related institutions have been registered so far. Of them, 760 have renewed their registrations for the current academic year.
TAAN operating without organization renewal for two years
"A total of 164 institutions have not renewed their registrations. The ministry provided the Home Ministry with lists of both renewed and non-renewed institutions. Police action has been initiated against 95 of the non-renewed consultancies," he said.
Under the 2016 Directive on Educational Consultancy and Language Training Services, such institutions must undergo regular monitoring, regulation, and renewal. Operating without renewal is not permitted.
Government records show that 1,282 education consultancies are registered under federal and provincial authorities. However, the federation estimates that more than 4,000 such institutions are operating nationwide. If that figure is accurate, nearly 3,000 consultancies are functioning without proper registration or renewal.
A monitoring drive by the Department of Commerce, Supplies and Consumer Protection previously found that about 70 percent of operating consultancies lacked registration.
Education consultancy has become one of Nepal's fastest growing service industries. These firms assist students seeking admission in countries such as Australia, Canada, Japan, United States, South Korea, China, and various European nations by providing information on language requirements, visas, applications, academic programs, institutions, and costs.
Baral said the sector handles transactions worth billions of rupees annually. However, he noted that obtaining student visas has become more difficult after Nepal's credibility suffered following the Gen Z movement.
Every year, thousands of students leave Nepal for higher education abroad. Consultancy firms have also become a major source of employment. Baral describes the sector as a service industry that now requires stronger oversight.
"Education consultancy has evolved into a major service industry in Nepal," he said. "But the presence of unregistered institutions and weak regulation shows the need for better management focused on student welfare, transparency, and accountability."
The sector also faces criticism for aggressively promoting foreign education, potentially reducing enrollment in domestic higher education institutions.
Although the Education Ministry's Consultancy and Certification Branch is responsible for licensing, monitoring, and renewing consultancies, weak enforcement has allowed many institutions to operate without registration. The growing number of unregistered consultancies has increased the risk of fraud, while service fees vary widely even for similar services.
Industry representatives have called for stronger monitoring, a publicly accessible digital database of all consultancies, action against unregistered operators, and standardized service fees.
Baral said the ministry is preparing to approve the Education Consultancy Regulations 2083 BS, which reportedly includes a provision requiring consultancies to deposit Rs 2.5 million as security.
"Since we provide educational services and only charge approved fees and commissions for language preparation and visa processing, the proposed Rs 2.5 million security deposit is excessive. We have requested that it be reduced," he said.
In recent years, the Education Ministry has issued around 123,000 No Objection Certificates (NOCs) annually. By mid-March of fiscal year 2025/26, 85,306 students had already received NOCs.
The federation has also urged the government to require insurance coverage for tuition fees paid by Nepali students to foreign institutions through domestic insurance companies. It has proposed depositing three percent of education service fees into a student welfare fund to support students facing difficulties abroad.
Other demands submitted to the ministry include an immediate halt to consultancy and admission services conducted through unauthorized online portals, reforms to medical education and common entrance examination systems, and mandatory approval from the Education Ministry for foreign language testing services.
