Nepal's public debt has exceeded 45% of the country's gross domestic product (GDP), according to a report by the Public Debt Management Office.

The government's total outstanding debt stood at Rs 2611 billion as of February 12 in the current fiscal year 2024/25. The report shows that public debt was Rs 2434 billion at the start of the fiscal year and increased by Rs 176 billion within this period, reaching 45.77% of GDP.

Of the total debt, 50.87% is external, amounting to Rs 1328 billion, while 49.13% is domestic, totaling Rs 1282 billion. The depreciation of the Nepali currency against the US dollar added Rs 36.59 billion to the debt burden.

The government had set a target of raising Rs 547 billion in public debt for 2024/25. So far, it has mobilized Rs 290.57 billion, achieving 53.12% of the annual target. This includes Rs 229.15 billion in domestic loans (69% of the target) and Rs 61.42 billion in external loans (28.31% of the target).

Additionally, the government has allocated Rs 402.85 billion for debt servicing, including principal and interest payments. In the last seven months, it has paid Rs 178.75 billion, which accounts for 3.31% of the GDP. -- RSS