Everything You Need to Know About Nepal’s Soaring Public Debt
Summary
Nepal's public debt has surged to Rs 2.93 trillion by mid-April 2026, crossing 48% of GDP due to heavy borrowing, exchange rate losses, and debt servicing costs, raising concerns over fiscal sustainability and economic growth.
Key Points
- Nepal's public debt reached Rs 2.934 trillion as of mid-April 2026, up Rs 259 billion since the start of fiscal year 2025/26.
- The total debt equals 48.04% of GDP, split between Rs 1.388 trillion domestic and Rs 1.546 trillion external debt.
- Exchange rate depreciation added Rs 115.75 billion to the external debt burden in local currency terms.
- The government spent Rs 258.44 billion on debt servicing in the first nine months, highlighting a growing debt rollover cycle.
