Public Debt Surges by NPR 132 Billion in Six Months; External Loans Take Majority Share

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Public Debt Surges by NPR 132 Billion in Six Months; External Loans Take Majority Share

Public Debt Surges by NPR 132 Billion in Six Months; External Loans Take Majority Share

Ganesh Khatiwada 2026-01-21 20:56:52

Kathmandu, Nepal - Nepal’s public debt has surged significantly in the first half of the current fiscal year, with the country’s total borrowings increasing by NPR 132 billion in just six months, official government data shows.
According to the Public Debt Management Office’s latest report for the period ending Poush 2082/83, the nation’s public debt reached NPR 28 trillion 6 billion 39 crore by mid-January. Of this total, external debt constitutes 53 percent, highlighting Nepal’s continued reliance on foreign borrowings to fund development and public expenditure.
The government had set a target of mobilizing NPR 595 billion in loans during the current fiscal year. As per the report, NPR 214 billion had already been secured by the end of Poush, indicating that the government is progressing toward its borrowing target. However, the pace of debt accumulation raises concerns among economic observers and development analysts, especially given the broader macroeconomic challenges facing the country.
Economic experts say that while external financing supports infrastructure projects and public services, rising debt levels could pressure future budgets and debt-servicing capacity. They emphasize the need for prudent fiscal management, efficient utilization of borrowed funds, and efforts to expand domestic revenue sources to ensure long-term economic sustainability.
As Nepal continues to balance development needs with fiscal discipline, monitoring trends in public debt will be critical to safeguarding economic stability and growth.

Published Date 2026-01-21 20:56:52