KATHMANDU: The federal government can’t take foreign loan amounting to more than Rs 1.2 trillion as per a new law currently sub judice at parliament.

A bill registered at the parliament to amend the law related to public debt management has put a cap on foreign loan at Rs 1.2 trillion.

At the end of the first month of the fiscal year, the government has already taken Rs 6.13 trillion foreign loans. In the month, the government received Rs 3 billion in foreign loan.

As per the new law, the federal government can take up to Rs 1.2 trillion foreign loan at once or on different occurrence.

In the current fiscal year, the government aims to collect Rs 298 billion foreign loan and Rs 195 billion in internal loan.