Nepal's Public Debt Reaches Nearly Rs 2,400 Billion

Nepal's outstanding public debt has surged to nearly Rs 2,400 billion, reflecting an increase of Rs 98 billion in the last 10 months of the current fiscal year, according to the Public Debt Management Office (PDMO). At the start of the fiscal year, the public debt stood at Rs 2,299 billion, now constituting 42.02 percent of the country's gross domestic product (GDP).

In the month of Baisakh alone, the public debt increased by Rs 11.64 billion. Of the total debt, internal debt accounts for 20.76 percent of the GDP, while foreign debt comprises 21.26 percent.

The PDMO's latest report indicates that by the end of Baisakh, the government had accumulated a total loan amount of Rs 264.63 billion. During the same period, it managed to repay Rs 166.55 billion in principal. Of the total loan repayments, internal loans accounted for Rs 191 billion, while foreign loans amounted to Rs 73.63 billion.

This significant rise in public debt underscores the growing financial obligations of the country and highlights the importance of effective debt management strategies to ensure sustainable economic growth.