Nepal’s public debt has climbed to 42.08 percent of the country’s gross domestic product (GDP), according to Finance Minister Barshaman Pun during a House of Representatives meeting on Sunday. He pointed to an improved government capacity to repay loans, attributing this to effective domestic borrowing strategies guided by the National Natural Resources and Fiscal Commission.
As of mid-June 2024, Nepal’s debt burden has risen to Rs 2.434 trillion, up from Rs 2.299 trillion in mid-July 2023. The National Statistics Office projects the country’s GDP to reach Rs 5.748 trillion by the end of this fiscal year. Of the total debt, Rs 1.207 trillion (50.3 percent) consists of external loans, while Rs 1.192 trillion (49.7 percent) comes from domestic borrowing.
Over the past decade, the public debt to GDP ratio has increased from 24.8 percent to the current 42.08 percent. Finance Minister Pun noted that the 16th periodic plan aims to reduce this ratio to 39 percent by mid-July 2029. He emphasized the government’s commitment to managing public debt in line with the targets set by the periodic plan.