Nepal’s Foreign Debt Liability Triple in 2 years

Foreign Debt of Nepal: The total debt burden (public debt) of Nepal is Rs. 1728.93 billion. Out of this, external debt is Rs. 948.98 billion and Rs. 779.94 billion. The mentioned amount is the loan liability till January 2022. 

According to the Public Debt Management Office, Nepal’s total public debt is 40.5 per cent of the gross domestic product (GDP) and foreign debt is 22.24 per cent. The country’s public debt has risen sharply in the last four years.

Public debt has reached 40.5 per cent of GDP, raising questions about its utility and efficiency. Prime Minister Sher Bahadur Deuba has said that the country will not take any more loans except the most urgent ones and will pay attention to the efficiency and effectiveness of the loans taken. He emphasized bringing in foreign grants and investments as much as possible and taking only concessional loans even in case of having to take loans. 

In one quarter (October-December this year) of the foreign loan taken by Nepal, Rs 1.79 billion was paid as interest. 

In terms of foreign loans, Nepal’s multilateral donors have more loans. Of the total foreign debt, 50.44 per cent is from the World Bank and 31.36 per cent from the Asian Development Bank. 

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Among the multilateral donors, the Asian Development Bank has Rs 29.2 million, the European Economic Community Rs 246.9 million, the European Investment Bank Rs 4.2 billion, the Asian Infrastructure Investment Bank Rs 33.6 million and the World Bank (IDA) Rs 471 billion. IFAD has a debt of Rs 9.63 billion, IMF Rs 32.81 billion, Nordic Development Fund (NDF) Rs 2.14 billion and OPEC Fund Rs 8.6 billion. 
Japan, China and India have the highest bilateral debt.

Japan has a debt of Rs 41.15 billion, China Rs 31.65 billion and India Rs 30.76 billion. Of the total foreign debt, Japan accounted for 4.41 per cent, China 3.39 per cent and India 3.29 per cent. 

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