Kathmandu, April 28: Nepal’s public debt has climbed to nearly Rs. 3 trillion by mid-April of fiscal year 2025/26, reflecting growing borrowing needs and the impact of currency depreciation.
According to the Public Debt Management Office under the Ministry of Finance, total public debt reached Rs. 2,933.79 billion—an increase of Rs. 259.75 billion in the first nine months of the fiscal year. At the beginning of the year, debt stood at Rs. 2,674.04 billion.
Of the increase, Rs. 119.89 billion came from domestic borrowing, while Rs. 139.85 billion was added under external debt. External debt now accounts for Rs. 1,545.67 billion (52.69%), while domestic debt stands at Rs. 1,388.11 billion (47.31%).
Total outstanding debt rose by 9.72% during the review period, with external debt growing by 10% and domestic debt by 9.5%. Nepal’s debt-to-GDP ratio has reached 48.04%, including 25.31% from external debt and 22.73% from domestic borrowing.
Currency depreciation alone added Rs. 115.75 billion to the debt burden, underlining the country’s exposure to foreign exchange risks.
58% of annual borrowing target achieved
By mid-April, the government had mobilised Rs. 348.15 billion in public debt, achieving 58.45% of its annual target of Rs. 595.66 billion. Of this, Rs. 283.66 billion was raised domestically and Rs. 64.48 billion externally.
Domestic borrowing has reached 78.36% of its target, while external borrowing lags at 27.60%. So far, domestic debt accounts for 81.48% of total mobilisation, compared to 18.52% from external sources.
The government has spent Rs. 258.44 billion on debt servicing—62.88% of its allocated budget of Rs. 411.01 billion. This includes Rs. 204.16 billion in principal repayments and Rs. 54.27 billion in interest.
Domestic debt servicing accounted for Rs. 163.77 billion in principal and Rs. 45.60 billion in interest, while external debt payments stood at Rs. 40.39 billion in principal and Rs. 8.67 billion in interest.
Overall, debt servicing now represents 4.23% of Nepal’s GDP, highlighting the growing fiscal burden. #Nepal #debt
