Nepal’s Public Debt Exceeds Rs 2,536 Billion, Reaching 44% of GDP

Nepal’s public debt has surpassed Rs 2,536 billion by mid-January of the current fiscal year, constituting over 44% of the country’s Gross Domestic Product (GDP). According to the Public Debt Management Office, the total public debt has increased by Rs 102 billion over the past six months, rising from Rs 2,434 billion at the beginning of the fiscal year to Rs 2,536 billion by January 15.

Of the total public debt, foreign debt accounts for 51.31%, amounting to Rs 1,301 billion, while the remaining 48.68% or Rs 1,234 billion is internal debt. The external debt alone represents 22.81% of GDP, while internal debt makes up 21.64%.

The government set a target of raising Rs 547 billion in public debt during the current fiscal year, and by mid-January, it had already raised Rs 240 billion, or 43.89% of the annual goal. The internal debt target of Rs 330 billion has been met with Rs 181 billion raised, while Rs 59 billion has been mobilized in external loans against a target of Rs 217 billion.

In addition, the government allocated Rs 402.85 billion for the repayment of public debt principal and interest in the current fiscal year. By mid-January, Rs 182.4 billion had been paid, accounting for 3.20% of the total GDP.