The Education Consultancy Association of Nepal (ECAN), representing hundreds of consultancies, has submitted a detailed amendment proposal after the new regulations came into force earlier this month, with discussions over the disputed provisions now under way.
The developments come as Nepal issued more than 123,000 no-objection certificates (NOCs) for overseas study in 2025, with Australia, Japan, the US, Canada and the UK remaining the leading destinations for Nepali students.
Approved by Nepal’s Cabinet on July 8 and published in the official gazette with immediate effect, the regulations replace decades-old ministry guidelines with legally binding standards governing education consultancies, language teaching centres and preparatory classes.
Officials say the measures are intended to strengthen oversight, improve transparency and better protect students following months of fraud investigations, police raids and complaints involving education consultancies, replacing a patchwork of ministry guidelines that had governed the sector for years but lacked the force of law.
While Dahal said ECAN supports stronger regulation and greater accountability, he argued that several provisions of the new framework would disproportionately affect legitimate operators without addressing the root causes of fraud.
He also said the regulations were introduced without meaningful consultation with industry stakeholders despite the sector’s central role in Nepal’s outbound education ecosystem.
“First, the government’s perception of this sector is completely detached from reality,” Bashu Dev Dahal, first vice-president of ECAN, told The PIE News.
“For over three decades, our sector has contributed significantly to making the world’s best education accessible even to students from the most remote areas of the nation. These Nepalese students enriching themselves around the globe are the real seeds of our society’s better thinking, strength, and confidence, forming the very foundation of Nepal’s future.
“As it stands, this regulation will completely ruin the sector.”
Among the new requirements are a mandatory Nepali rupees (NPR) 2.5 million (around £12,000) security deposit, annual licence renewals, a requirement for agencies to own their premises or hold a minimum three-year lease, government approval for overseas education fairs, minimum infrastructure standards, consultancy grading, mandatory digital payments and stronger financial liability for agencies in certain circumstances.
Dahal said the cash deposit would tie up vital capital and force many small and medium-sized consultancies out of the market, while restrictions on commissions from overseas institutions would remove agencies’ principal source of income and ultimately increase costs for students.
He argued the combined effect would make overseas education less accessible, particularly for lower- and middle-income families, while grading consultancies based on visa outcomes was unscientific because visa decisions are made by foreign governments rather than education agents.
Beyond the individual provisions, Dahal argued the framework fundamentally misunderstood how Nepal’s education consultancy sector operates.
“The framework is fundamentally flawed and fails to understand our core functions, going so far as to restrict us from guiding students through mandatory documentation and even visa application procedures,” he said.
“Furthermore, it completely overlooks critical industry sectors, offering no regulation for franchise models, EdTech companies, or B2B collaborations.”
Rather than calling for the regulations to be scrapped, Dahal said ECAN had proposed a series of amendments, including replacing the security deposit with an insurance-based system, extending licence validity from one year to five years, legally recognising commissions received from overseas institutions, permitting regulated education fairs instead of banning them, removing the proposed grading system and introducing more practical infrastructure standards.
The proposal also calls for a longer transition period for existing operators to comply with the regulations, greater due process before licences are revoked, a warning-based approach for minor advertising breaches instead of immediate licence cancellation, and clearer rules around approvals for in-office counselling sessions and student information events.
As stakeholders, we have a lot to say for the betterment of this framework, and we will only support implementation after the necessary amendments are made to create a strong, well-regulated, yet fair industry
Bashu Dev Dahal, ECAN
The reforms follow a sustained crackdown on Nepal’s consultancy sector over the past year. Authorities have investigated consultancies accused of fraud, document forgery and misleading students, while police have arrested operators linked to an alleged fake UAE study scheme, conducted large-scale raids across Kathmandu Valley and targeted unregistered operators.
Regulators have also alleged that some consultancies facilitated overseas employment under the guise of study abroad, alongside accusations of visa guarantees, fabricated offer letters and refusal to issue refunds following visa refusals.
Last month, stakeholders across Nepal told The PIE they supported stronger oversight, provided reforms focused on fraudulent operators without placing unnecessary burdens on compliant agencies.
After the regulations were gazetted, ECAN launched a phased protest campaign beginning with discussions involving students, parents and education journalists before members wore black armbands to work and staged demonstrations across major cities on July 17. The association has warned it will escalate to a nationwide operational shutdown if the government refuses to amend the regulations.
Despite the protests, Dahal said the association remained optimistic that negotiations with the government would eventually produce changes to the framework.
“We want a seat at the table. As stakeholders, we have a lot to say for the betterment of this framework, and we will only support implementation after the necessary amendments are made to create a strong, well-regulated, yet fair industry.”
