KATHMANDU, Feb. 21 -- The weakening of the Nepali currency against the US dollar in recent months has taken a toll on the government, leading to soaring debt servicing liabilities.

Records from the Public Debt Management Office (PDMO) show that fluctuations in the exchange rate have significantly impacted the country's external loans. In the past month alone, Nepal faced an additional debt burden of Rs 24.98 billion due to the appreciation of the US dollar.

As of mid-January this year, external debt accounted for Rs 1.301 trillion of the total public debt, which rose to Rs 1.328 trillion by mid-February. During this period, the government repaid Rs 520 million in interest and principal on external loans.

According to Nepal Rastra Ba...