Nepal’s outstanding public debt has surpassed Rs 2.8 trillion, reaching Rs 2,806.39 billion by mid-January of the current fiscal year 2025/26, according to the Public Debt Management Office.
At the beginning of the fiscal year on July 17, 2025, total public debt stood at Rs 2,674.04 billion. Within six months, it increased by Rs 132.34 billion. The total debt now accounts for 45.95 percent of the country’s gross domestic product (GDP).
Of the total outstanding debt, external borrowing amounts to Rs 1,408.26 billion, representing 53 percent, while internal debt stands at Rs 1,319.13 billion, or 47 percent. In terms of GDP, internal debt accounts for 21.60 percent and external debt 24.35 percent.
For the current fiscal year, the government has set a target of raising Rs 595 billion in public debt. By the mid-term budget review, it had already mobilised Rs 214.55 billion, which is 36.02 percent of the annual target.
