KATHMANDU: Nepal’s public debt has now exceeded 45 percent of the country’s Gross Domestic Product (GDP).

A report from the Public Debt Management Office indicates that the government’s total loan reached Rs 2.611 trillion by February 12 in the current fiscal year (2024/25).

“The public debt stood at Rs 2.434 trillion at the beginning of the fiscal year and has risen by Rs 176 billion by February 12, bringing the total debt to 45.77 percent of GDP,” the report revealed.

Of the total public debt, 50.87 percent is external, and 49.13 percent is internal. The internal loan has reached Rs 1.282 trillion, while the external loan is Rs 1.328 trillion.

Due to the depreciation of the Nepali rupee against the US dollar, an additional Rs 36.59 billion has been added to the debt burden.

The government had initially aimed to raise Rs 547 billion in public debt for the fiscal year. So far, Rs 290.57 billion has been mobilized, which is 53.12 percent of the annual target.

The government’s goal is to raise Rs 330 billion in domestic loans and Rs 217 billion in external loans this year.

By February 12, Rs 229.15 billion has been raised through domestic loans, and Rs 61.42 billion through external loans, representing 69 percent of the domestic loan target and 28.31 percent of the external loan target.

Furthermore, the government has allocated Rs 402.85 billion for repaying the principal and interest of public debt. According to the Office, Rs 178.75 billion has been paid in the past seven months. Debt servicing expenses as of February 12 account for 3.31 percent of GDP.