Nepal, Aug. 1 -- Despite declining interest rates, investors are increasingly turning to government-issued development bonds, driven by sluggish economic activity in the real sector and limited attractive investment alternatives.

Although interest rates on development bonds have fallen in recent weeks, these long-term credit instruments remain appealing due to heightened risks and low returns in other business ventures. This growing interest is evident in the surge of applications received by the Public Debt Management Office (PDMO) for bond subscriptions over the past week.

According to PDMO records, the government issued two public calls to sell development bonds worth Rs 20 billion during the past week. In response, the office receiv...