Nepal’s Total Public Debt Exceeds Rs 2.4 Trillion: PDMO Data
Nepal’s Rising Public Debt: A Closer Look
Nepal, a country known for its stunning landscapes and rich cultural heritage, is facing a significant challenge when it comes to its public debt. As of mid-June of the current fiscal year, the total public debt has surpassed Rs 2.4 trillion, with a substantial portion being attributed to both domestic and external debt.
According to the Public Debt Management Office (PDMO), the country’s domestic debt stands at Rs 1.195 trillion, while the external debt amounts to Rs 1.28 trillion. This means that nearly half of Nepal’s public debt is owed to external lenders, including multilateral and bilateral institutions.
The breakdown of the debt reveals some interesting insights. The largest obligation on the domestic front comes from development bonds, totaling Rs 764.94 billion. On the external front, multilateral lenders hold the majority of the debt, with Rs 1.071 trillion owed to them.
In an effort to manage this debt burden, the government had set a target to raise a total of Rs 452.75 billion in debt for the current fiscal year. While a significant portion of this target has already been achieved, there is still a gap of Rs 145 billion that needs to be filled by mid-May.
Repayment of the debt is also a crucial aspect of debt management. The government allocated Rs 225.17 billion for the repayment of the principal on government debt and Rs 105.38 billion for interest payments. So far, a substantial amount has been spent on repaying both the principal and interest on both domestic and external debt.
As Nepal continues to navigate its way through these challenging economic times, it is essential for policymakers to carefully monitor and manage the country’s public debt. By striking a balance between borrowing and repayment, Nepal can ensure its financial stability and pave the way for sustainable economic growth.
In conclusion, the rising public debt in Nepal is a pressing issue that requires attention and strategic planning. With careful management and prudent decision-making, Nepal can overcome this challenge and set the stage for a brighter economic future.
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