Nepal’s total public debt reached Rs 2.729 trillion in the first four months of fiscal year 2025/26, equivalent to 44.69 percent of GDP. The government borrowed Rs 138.75 billion during this period, while repaying Rs 127.61 billion. After adjusting for exchange rate effects, the net rise in debt amounted to Rs 55.36 billion. Finance Minister Rameshore Khanal defended the borrowing, saying it was necessary given rising pressure on recurrent spending and was not undertaken carelessly.
