The government successfully achieved its full target for domestic debt in the previous fiscal year 2024/25 but only secured 57.79 percent of its external debt goal, as reported by the Public Debt Management Office.
Out of the Rs 330 billion target for domestic debt, the entire amount was raised. However, only Rs 125.3 billion was gathered from the Rs 217 billion external debt target, resulting in a shortfall of Rs 91.6 billion.
Public Debt Management Office Chief Gopikrishna Koirala noted that the discrepancy was due to low capital expenditures and delays in project implementations, which hindered timely reimbursements from foreign lenders.
Overall, the government aimed to generate Rs 547 billion in public debt, accomplishing 83.25 percent of this objective. By mid-July 2025, the total public debt reached Rs 2,669 billion, representing 43.71 percent of GDP, with external loans accounting for 52.49 percent and domestic loans 47.51 percent.
During this fiscal period, the government expended over Rs 400 billion on servicing the debt, which encompassed both principal and interest payments, constituting 90 percent of the set budget and 5.94 percent of GDP.
