Finance Minister assures manageable public debt amid low loan costs

KATHMANDU: Finance Minister Barsha Man Pun has dismissed the possibility of Nepal falling into a debt trap, asserting that the country's public debt remains manageable compared to other nations. 

In a meeting of the House of Representatives, Minister Pun emphasised that Nepal's loan costs are also relatively low. He assured that the country won't be ensnared in a debt crisis, considering the current level of public debt and its associated costs. The government remains committed to maintaining loan sustainability while utilising public funds for productive sectors.

As of May 13 in the current fiscal year 2023/24, Nepal's public debt has increased by Rs 98.08 billion, reaching Rs 239.7 billion. The remaining debt to be serviced stands at Rs 2,299.35 billion as of July 16, 2023, accounting for 42.02% of the GDP. Of the outstanding loans, internal debt amounts to Rs 1,184.48 billion (49.4% of GDP), while external debt stands at Rs 1,212.95 billion (50.6% of GDP).

In the current fiscal year, the government has mobilised a total of Rs 264.63 billion, including Rs 191 billion for internal loans and Rs 73.63 billion for external loans. Additionally, the government has paid a principal sum of Rs 166.55 billion, with Rs 135.62 billion allocated to internal loans and Rs 30.93 billion to external loans.

Minister Pun also highlighted the success of the Nepal Investment Summit held on April 28 and 29. The private sector's confidence has been bolstered by the Summit, which led to amendments in investment facilitation laws and expressions of interest for 19 projects, Minister Pun said. Nepal has been promoted as a premier investment destination globally, he added.

Furthermore, the Finance Minister affirmed that budget allocations adhere to equitable principles.

By RSS