Nepal, May 18 -- The financial position of state-owned Nepal Airlines Corporation (NAC), long plagued by irregularities, has deteriorated sharply as its debt burden continues to soar.

The 63rd report of the Office of the Attorney General (OAG) highlights that NAC's outstanding loans reached Rs 55.78 billion by the end of the last fiscal year-a staggering increase of Rs 19 billion over the past decade. In 2013, the corporation borrowed Rs 36 billion, including Rs 22 billion from the Employees Provident Fund (EPF) and Rs 12 billion from the Citizen Investment Trust (CIT), to purchase Airbus A320 and A330 aircraft.

Currently, NAC owes Rs 31.33 billion to the EPF and more than Rs 21.12 billion to the CIT. The OAG has instructed the nationa...