Kathmandu: Education entrepreneur and former chairman of Higher Institutions and Secondary Schools' Association Nepal and Private and Boarding Schools' Organization Nepal, Umesh Shrestha, has said that Nepal has the potential to develop into a regional hub for education, technology and artificial intelligence (AI) in South Asia.

Speaking at the "Fourth Center for Education Excellence Awards 2083" held in Lalitpur on Tuesday, Shrestha emphasized that the education sector could make a major contribution to the national economy if supported by appropriate policies and an investment-friendly environment.

Call for Long-Term and Investment-Friendly Education Policies
Shrestha urged policymakers to study successful international education models and adopt long-term strategies that encourage both domestic and foreign investment in the sector.

According to him, the upcoming Education Act should create a supportive environment for private sector participation rather than imposing restrictive measures.

"The Education Act should be investment-friendly and private sector-friendly. Why can't Nepal become the education hub of South Asia?" he questioned.

Quality Education Remains a Major Challenge
Addressing the current state of education, Shrestha noted that many public schools face declining student enrollment despite significant government investment.

According to his remarks, out of approximately 28,000 public schools across Nepal, around 10,000 have fewer than half the expected number of students, creating challenges in managing teaching staff and educational resources.

He argued that improving the quality of education remains the most important challenge facing the sector.

Concern Over Large Outflow of Education Spending
Shrestha highlighted the growing number of Nepali students seeking education abroad and the resulting economic impact.

He stated that more than one trillion rupees is spent annually on overseas education by Nepali students and their families. At the same time, he pointed out that the private sector has already invested more than seven trillion rupees in Nepal's education sector.

According to him, retaining more students within Nepal through quality educational institutions could help strengthen both the education system and the national economy.

Private Sector's Contribution to Higher Education
Shrestha also emphasized the role of private investment in developing higher education institutions throughout the country.

He noted that private investors have contributed significantly to the establishment and operation of 48 engineering colleges and numerous other higher education institutions. He called on the government to introduce clear, stable and long-term policies that encourage further investment in the sector.

Criticism of Taxes on Education and Health
Expressing concern over government policies affecting education and healthcare, Shrestha criticized the imposition of taxes and fees on these sectors.

He argued that education and health services should be viewed as national priorities and that policies should encourage rather than discourage private sector participation.

According to Shrestha, protecting and promoting responsible private investment is essential if Nepal aims to improve educational quality, attract international students, and position itself as a regional center for education, technology and artificial intelligence.