Total foreign assistance commitments dropped 37 percent to $5.24 billion in FY26 from $8.32 billion a year earlier, a decline of nearly 37 percent

Bangladesh is set to spend over $30 billion this fiscal year to service its debts, covering both principal repayments and interest on domestic and foreign loans, according to projections by the International Monetary Fund.

The cost of debt servicing has risen significantly amid a higher flow of loans from development partners and an elevated level of interest payments, compounding pressure on the foreign currency reserve of Bangladesh, official figures showed.  

Because of the importance given to debt-funded infrastructure-based development, the country’s economy is being burdened by increasing unsustainable foreign debt and import dependence.

Debt servicing has become a rising concern for developing countries in recent times.