Nepal’s public debt nears Rs 3 trillion: Everything you need to know
Summary
Nepal’s public debt has climbed to just under Rs 3 trillion, equal to 45.05 percent of GDP, even after a small decline in the first two months of fiscal year 2026/27. Debt servicing has already consumed more than Rs 85 billion, far outpacing capital spending on infrastructure.
Key Points
- Nepal’s outstanding public debt stood at about Rs 2,973 billion, or 45.05 percent of GDP, by mid-September 2026.
- The government borrowed Rs 61.05 billion in the first two months of FY 2026/27, but repayments of older loans were higher, causing a slight drop in total debt.
- Debt servicing reached Rs 85.01 billion in two months, more than eleven times the Rs 7.66 billion spent on capital expenditure.
- Exchange rate movements added about Rs 436 million to the debt burden because of Nepal’s foreign-currency liabilities.
