Nepal’s Total Public Debt Exceeds Rs 2.4 Trillion: PDMO

Nepal’s Public Debt Exceeds Rs 2.4 Trillion, PDMO Reports

KATHMANDU, June 21: Nepal’s total public debt has surpassed Rs 2.4 trillion, according to the latest data from the Public Debt Management Office (PDMO). As of mid-June in the current fiscal year 2023/24, the country’s domestic debt stood at Rs 1.195 trillion, while the external debt amounted to Rs 1.28 trillion.

The total public debt at the beginning of the fiscal year in mid-July 2023 was Rs 2.299 trillion, indicating an increase of Rs 199 billion in debt over the first 11 months of the fiscal year. Of the total public debt, 49.68 percent is domestic debt, while 50.32 percent is external debt.

Multilateral lenders hold the majority of the external debt, with Rs 1.071 trillion owed to them, followed by Rs 136.74 billion owed to bilateral lenders. On the domestic front, the largest obligation comes from development bonds, totaling Rs 764.94 billion.

The government had set a target to raise a total of Rs 452.75 billion in debt for the current fiscal year, with Rs 240 billion in domestic debt and Rs 212.75 billion in external debt. By mid-May, 67.96 percent of the target had been achieved, with 93.75 percent of the annual target for domestic debt and 38.86 percent for external debt being met.

Dirgha Raj Mainali, the chief of PDMO, stated that Rs 145 billion remained to be raised by mid-May to meet the debt target for the fiscal year. In terms of debt repayment, Rs 225.17 billion was allocated for principal repayment and Rs 105.38 billion for interest payments in the current fiscal year. As of the first 10 months, 87.83 percent of the budget for principal repayment and 70.9 percent for interest repayment had been utilized.

A total of Rs 227.20 billion has been spent on repaying the principal and interest on domestic debt, while Rs 43.99 billion has been allocated for repaying the principal and interest on external debt by mid-May of the current fiscal year.