KATHMANDU: As of mid-June 2024, Nepal’s sovereign debt has surpassed Rs 2400 billion, as reported by the Public Debt Management Office. This includes Rs 1192.48 billion in internal debt and Rs 1207.86 billion in external debt. At the beginning of the current fiscal year 2023/24, Nepal’s debt stood at Rs 2299.35 billion, indicating an increase of Rs 101 billion over the past 11 months.

Approximately half of Nepal's sovereign debt comprises external borrowings, totaling 50.32%, while the remaining 49.68% is internal debt. Multilateral lenders account for the majority of external debt, with Nepal owing over Rs 1071 billion to such institutions, while bilateral lenders are owed Rs 136.74 billion.

Among internal debts, development bonds constitute the largest component at over Rs 764.94 billion, followed by Treasury Bills amounting to Rs 412.69 billion. For the fiscal year 2023/24, the government had aimed to raise Rs 452.75 billion in loans, with Rs 240 billion to be sourced internally and Rs 212.75 billion externally.

As of mid-May, the government had successfully secured Rs 225 billion through internal loans and Rs 82.67 billion through external loans, achieving approximately 67.96% of its annual loan target. Chief Dirgha Raj Mainali of the Public Debt Management Office noted that Rs 145 billion still needs to be mobilized to meet the fiscal year's loan target.

In terms of debt servicing, the government allocated Rs 225.17 billion for repaying principal amounts and an equivalent sum for interest payments in the current fiscal year. As of now, Rs 197.32 billion has been utilized to repay principal amounts, along with Rs 31.52 billion for interest payments, according to the Public Debt Management Office's latest update.