Nepal’s Public Debt Soars to Rs 2.288 Trillion, Government Grapples with Loan Repayment

In a recent revelation by the Public Debt Management Office, Nepal’s public debt has surged to a staggering Rs 2.288 trillion, painting a concerning picture of the country’s financial landscape. The data, unveiled on Sunday, outlines the intricacies of Nepal’s debt burden, shedding light on both domestic and foreign liabilities.

As per the figures, Nepal finds itself grappling with a sizable Rs 1.185 trillion in domestic debt alongside Rs 1.227 trillion in foreign debt, highlighting the magnitude of financial obligations on both fronts. Despite efforts at repayment, the government has struggled to alleviate its debt burden, with additional loans amounting to Rs 218.86 billion acquired during the last eight months of the current fiscal year 2080/81.

Efforts to mitigate the debt load have seen the government making payments totaling Rs 146.64 billion towards domestic debt and Rs 28.86 billion towards foreign debt up until the current month of Falgun. However, the incremental borrowing undertaken during the fiscal year has led to a notable surge in both domestic and foreign debt, with an increase of Rs 163.31 billion and Rs 55.55 billion, respectively.

The data underscores the significant outstanding debt, standing at Rs 1.185 trillion for domestic debt and Rs 1.227 trillion for foreign debt. Disturbingly, out of the loans procured, the government has only managed to repay Rs 126.03 billion in principal, while the interest payments have mounted to Rs 49.47 billion, as per the latest insights.

Nepal’s mounting public debt poses a formidable challenge to the nation’s fiscal stability, necessitating concerted efforts towards effective debt management and sustainable economic policies in the times ahead.