As of mid-March in the current fiscal year 2024/25, Nepal’s outstanding public debt has reached Rs 2.68 trillion, according to the Public Debt Management Office’s second-quarter report. The government has added approximately Rs 205 billion in debt this fiscal year alone.
At the beginning of the fiscal year, total public debt stood at Rs 2.43 trillion. By mid-March, an additional Rs 241.93 billion had been accumulated, bringing the total debt to Rs 2.68 trillion—equivalent to 46.91 percent of Nepal’s Gross Domestic Product (GDP). The report also noted that fluctuations in foreign currency exchange rates increased Nepal’s public debt liability by Rs 66.29 billion.
Foreign debt accounts for 50.83 percent of the total public debt, amounting to Rs 1.36 trillion, while domestic debt makes up 49.16 percent, totaling Rs 1.316 trillion. The ratio of domestic debt to GDP stands at 23.06 percent, while external debt constitutes 23.85 percent of GDP.
The government set a target of raising Rs 547 billion in public debt for the fiscal year. By mid-March, it had secured Rs 334.62 billion, reaching 61.17 percent of its annual target. Of the Rs 330 billion targeted in domestic debt, 81.56 percent (Rs 269.15 billion) has been secured. However, external debt mobilization has lagged behind, with only 30.17 percent (Rs 65.47 billion) of the Rs 217 billion target secured by mid-March.
For debt servicing, the government allocated Rs 428.5 billion for the fiscal year. By mid-March, it had paid Rs 217.2 billion, covering 50.08 percent of the annual debt service obligation. The total debt service cost up to mid-March accounts for 3.54 percent of GDP.
