Govt fully meets internal debt target, falls short on external borrowing – The Himalayan Times – Nepal’s No.1 English Daily Newspaper

KATHMANDU, JULY 30

The government successfully raised its entire target for internal debt in the last fiscal year 2024/25 but managed to secure only 57.79 percent of the planned external debt, according to a report by the Public Debt Management Office.

Of the Rs 330 billion target for internal debt, the full amount was mobilized. However, only Rs 125.3 billion was collected out of the Rs 217 billion external debt target, leaving a shortfall of Rs 91.6 billion.

Public Debt Management Office Chief Gopikrishna Koirala attributed the gap to low capital expenditure and delays in project execution, which prevented timely reimbursement from foreign lenders.

In total, the government had aimed to raise Rs 547 billion in public debt, achieving 83.25 percent of the goal. By mid-July 2025, total public debt stood at Rs 2,669 billion, or 43.71 percent of GDP, with external loans making up 52.49 percent and domestic loans 47.51 percent.

During the fiscal year, the government spent over Rs 400 billion on debt servicing, covering both principal and interest payments, amounting to 90 percent of the allocated budget and 5.94 percent of GDP.

(With inputs from RSS)