The Bangladesh government spent Tk 71,253 crore on interest payments for domestic and foreign loans during the first six months of the current fiscal year (July–December), marking a 22 percent increase from the same period last year, according to the Finance Ministry’s latest quarterly debt bulletin. In the previous fiscal year’s first half, interest payments totaled Tk 58,392 crore.

The bulletin shows that domestic debt accounted for the largest share, with Tk 61,866 crore paid in interest—25 percent higher than the previous year—while foreign loan interest rose by 5 percent to Tk 9,387 crore. The report attributes the rising debt servicing burden to lower-than-targeted revenue collection, which has forced the government to rely more heavily on borrowing, particularly from domestic banks. Revenue shortfall in the first nine months reached nearly Tk 1 trillion, a record level.

The bulletin notes a strategic shift toward domestic borrowing to reduce currency risk and stabilize liquidity. As of December, total government debt stood at Tk 22.06 trillion, up from Tk 21.44 trillion in June 2025.