Bangladesh’s foreign aid landscape saw a noticeable contraction during the first eleven months of the current fiscal year (FY2025–26), marked by a sharp decline in both foreign commitments and disbursements, even as debt-servicing liabilities continued to climb.
According to the Economic Relations Division (ERD) report released today (23 June), total foreign aid disbursements dropped by more than $1 billion compared with the same period of the previous fiscal year.
Concurrently, the country’s total debt-servicing payments crossed $4 billion, it adds.
The report says cumulative foreign aid commitments during the July 2025-May 2026 period stood at $4.23 billion, marking a significant decline from the $5.49 billion recorded during the corresponding 11-month period of the previous fiscal year (FY25).
Actual foreign aid inflows also experienced a similar downturn, according to the ERD report.
The report reads, “Total foreign assistance disbursements fell to $4.58 billion in FY2025-26 from $5.61 billion in the same period of the previous fiscal year, representing a decline of more than $1 billion in overall resource inflows.”
Earlier, an ERD report released on 24 May said development partners released $4.236 billion during the July to April period.
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