Kathmandu, Nov. 2: Nepal’s total outstanding government debt has climbed to Rs. 2,724.65 billion as of mid-October 2025, according to the Public Debt Management Office under the Ministry of Finance. This marks an increase of Rs. 50.60 billion during the first quarter of the current fiscal year 2025/26.
The report shows that domestic debt rose by Rs. 9.85 billion, while external debt increased by Rs. 40.76 billion in the first three months of the fiscal year. Overall, the public debt grew by 1.9 per cent, with external and domestic debts rising by 2.9 per cent and 0.8 per cent, respectively.
By the end of fiscal year 2024/25, the government’s total debt had stood at Rs. 2,674.04 billion. Of the current total, external debt amounts to Rs. 1,446.58 billion, while domestic debt stands at Rs. 1,278.07 billion.
External borrowing continues to dominate Nepal’s debt structure, accounting for 53.39 per cent of the total outstanding debt, whereas domestic borrowing represents 46.91 per cent.
Debt Mobilisation at 16.93% of Annual Target
During the first quarter, the government mobilised an additional Rs. 100.84 billion in loans, achieving 16.93 per cent of its annual borrowing target of Rs. 595.66 billion.
Of this, Rs. 90 billion was raised through domestic borrowing, and Rs. 10.84 billion through external loans. The government plans to collect Rs. 362 billion from domestic sources and Rs. 233.66 billion from external sources over the fiscal year.
So far, the achievement rate stands at 24.86 per cent for internal debt and 4.64 per cent for external debt.
Rs. 109.89 Billion Spent on Debt Servicing
In the same period, the government spent Rs. 109.89 billion on principal and interest payments. Of this, Rs. 90.50 billion was paid as principal and Rs. 19.38 billion as interest.
The government disbursed Rs. 80.15 billion for principal and Rs. 16.26 billion for interest on domestic loans, while Rs. 10.35 billion was used for principal and Rs. 3.12 billion for interest on external debt.
Altogether, debt servicing expenses accounted for 26.74 per cent of the total Rs. 411.01 billion budget allocated for financial management in the current fiscal year.
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