Bangladesh’s Economic Relations Division (ERD) reported that in the first nine months of the current fiscal year (July–March), foreign loan commitments and disbursements declined, while repayment obligations increased significantly. The government repaid a total of 3.52 billion US dollars in principal and interest, up 9.74 percent from the same period last year. Meanwhile, foreign aid commitments fell by 6.69 percent to 2.80 billion dollars, and total disbursements dropped by 19 percent to 3.89 billion dollars.
ERD officials attributed the slowdown in foreign fund releases to election-related transitions, administrative restructuring, and project re-evaluations following the new government’s assumption of office. Delays in tender reviews, contract approvals, and design revisions also contributed to slower disbursements. The officials expect improvement later in the fiscal year, citing efforts to secure about 3.2 billion dollars in budget support.
The report noted that Russia, the World Bank, and the Asian Development Bank were the top lenders during the period. Rising repayment obligations, both foreign and domestic, indicate growing fiscal pressure on the government, with total repayments reaching about 430 billion taka in local currency terms.