KATHMANDU: Finance Minister Swarnim Wagle announced that the government will only take loans for sectors that guarantee clear economic returns, addressing a National Assembly discussion on the National Debt Mobilization Bill.

He noted that past investments in unproductive areas caused public debt to spike by an average of 18% annually over the last eight years.

While total national debt is projected to rise to around Rs 3.3 trillion, Wagle reassured lawmakers that the debt-to-GDP ratio will remain stable because the government plans to simultaneously expand Nepal’s economy to Rs 7.4 trillion.

He specified that a major portion of the newly proposed Rs 650 billion borrowing will be used directly to repay existing debt obligations.