Beside other reasons, I think this is just another corrupt practice of inept government. My hunch is, as I heard few more private Medical Colleges opening up soon in Nepal and they need students, these people may have bribed the government to come up with this regulation.  This way potential medical student won't have choice but to pay high scarce fee in Nepal rather going out of country for affordable colleges. I heard these colleges ask  20 to 30 LAKH donations just to get admitted to the colleges......