KATHMANDU: Nepal’s public debt is projected to reach Rs 2.94 trillion by the end of the current fiscal year 2025/26.

According to the Public Debt Management Office, domestic debt will make up about 46.85%, and foreign debt 53.15% of the total public debt.

Among domestic debt instruments, development bonds account for the largest share at 33.98%, followed by treasury bills at 12.2%, citizen saving certificates at 0.49%, IMF bonds at 0.13%, and foreign employment saving certificates at 0.04%.

In the previous fiscal year 2024/25, public debt increased by Rs 231.08 billion, bringing the total public debt to Rs 2.66 trillion.

The debt-to-GDP ratio is estimated to be around 43.08% by the end of this fiscal year.

Economists consider a debt ratio up to 45% of GDP to be relatively safe.