Nepal’s public debt has exceeded 45% of the country’s Gross Domestic Product (GDP), according to the latest report from the Public Debt Management Office.
As of February 12, 2025, the government’s total loan burden reached Rs 2.611 trillion, a sharp increase from Rs 2.434 trillion at the beginning of the fiscal year 2024/25, marking an addition of Rs 176 billion. This has pushed the total public debt to 45.77% of the national GDP.
The composition of the public debt stands at 50.87% external loans and 49.13% internal loans. The internal debt amounts to Rs 1.282 trillion, while the external debt has reached Rs 1.328 trillion. Additionally, the depreciation of the Nepali currency against the US dollar has added Rs 36.59 billion to the external debt burden.
For the current fiscal year, the government set a target of Rs 547 billion in public debt mobilization. So far, Rs 290.57 billion has been raised, achieving 53.12% of the annual target. This includes Rs 229.15 billion in domestic loans and Rs 61.42 billion in external loans, which account for 69% and 28.31% of their respective targets.
To manage debt obligations, the government has allocated Rs 402.85 billion for principal and interest payments. In the first seven months of the fiscal year, Rs 178.75 billion has been spent on debt servicing, accounting for 3.31% of the GDP.
