Nepal, July 23 -- Nepal's public debt has surged to Rs 2.974 trillion in fiscal year (FY) 2025/26, equivalent to 45.07 percent of the country's gross domestic product (GDP), according to the Public Debt Management Office (PDMO). The figure reflects an additional borrowing of Rs 385 billion during the review year.

At the start of FY 2025/26, public debt stood at Rs 2.674 trillion. The government had targeted mobilizing Rs 595.66 billion in debt during the year but managed to raise only Rs 447.17 billion - 75.07 percent of the annual target. Repayments and foreign exchange adjustments reduced the net addition to Rs 385 billion.

Officials attribute the rise in the debt burden to both increased borrowing and foreign exchange fluctuations. ...