As of mid-November 2024, the total outstanding public debt of Nepal has reached Rs. 2,518 billion. This includes Rs. 1,265.89 billion in external debt and Rs. 1,252.16 billion in domestic debt.
The total debt has increased by 3.45% compared to the same period last year, with external debt rising by 1.01% and domestic debt by 6.03%. External debt now accounts for 50.27% of the total public debt, while domestic debt comprises 49.73%.
In the first four months of fiscal year 2024/25, Rs. 83.96 billion was added to the public debt, with Rs. 71.26 billion in domestic debt and Rs. 12.7 billion in external debt. The government plans to raise an additional Rs. 547 billion to meet the budget deficit for the current fiscal year, with Rs. 330 billion targeted from domestic borrowing and Rs. 217.67 billion from external loans.
So far, Rs. 165.71 billion has been mobilised, including Rs. 144 billion in domestic debt and Rs. 21.71 billion in external debt, meeting 43.64% of the domestic debt target but only 10% of the external debt target.
The government has also paid Rs. 108.14 billion in principal and interest on public debt, with Rs. 91.73 billion for domestic loans and Rs. 16.41 billion for external loans.
The International Development Association (IDA) holds the largest share of Nepal’s external debt (48%), followed by the Asian Development Bank (ADB) at 32.81%. Multilateral agencies account for 89.16% of external debt, while bilateral agencies hold 10.84%.
Nepal’s total debt-to-GDP ratio stands at 44.14% as of mid-November 2024, with the external debt-to-GDP ratio at 22.19% and domestic debt-to-GDP ratio at 21.95%. At the end of the previous fiscal year (2023/24), the debt-to-GDP ratio was 42.73%, with external debt at 21.75% and domestic debt at 20.98%.
