The government’s external debt servicing burden is projected to almost double to $7.6 billion in FY29 from $4.11 billion in FY25 as rising interest payments, shorter loan maturities, and repayments for several mega projects begin to weigh on public finances.

Amir Khosru details debt, repayments and borrowing trends

Foreign debt servicing by the government and its guaranteed loans rose 17 percent to $7.09 billion at the end of June in the last fiscal year.

Poorly executed, foreign-funded projects are becoming a burden for our economy

Bangladesh’s economy should be on guard for 2027 and 2028 from when the country will start to collectively pay back the interest due on four or five foreign loans taken for domestic mega-projects, according to Bangladesh Economic Association (BEA).

Finance Minister AHM Mustafa Kamal today said there is nothing to worry about Bangladesh's foreign debt as the annual repayment amount is equivalent to only two months' remittance income of the country.