The government plans to raise Rs. 100 billion in internal debt during the first quarter of Fiscal Year (FY) 2026/27, according to the annual borrowing calendar released by the Public Debt Management Office (PDMO). The government aims to take advantage of the prevailing low interest rates and raise a significant portion of its annual borrowing early in the fiscal year.
The government has set a target of raising Rs. 410 billion through domestic borrowing during FY 2026/27. Of the Rs. 100 billion planned for the first quarter, Rs. 10 billion will be raised through Treasury Bills with maturities of 91, 182 and 364 days, while Rs. 90 billion will be raised through Development Bonds, with interest rates determined through competitive bidding.
The PDMO plans to raise Rs. 93 billion in the second quarter, Rs. 102 billion in the third quarter and Rs. 97 billion in the fourth quarter through various debt instruments, including Treasury Bills, Development Bonds, Citizen Savings Certificates and Foreign Employment Savings Bonds.
The PDMO said the annual borrowing calendar will help investors plan their investments. Although relatively low interest rates have helped contain debt-servicing costs, Nepal’s public debt has been increasing due to weak revenue collection and rising government expenditure.
By the end of FY 2025/26, Nepal’s public debt had reached Rs. 2.975 trillion, equivalent to 45.07 percent of GDP, highlighting growing pressure on public finances.
