Both foreign aid commitments and disbursements have seen significant growth in the first four months (July-October) of the current FY26.
This information was revealed in the updated report released by the Economic Relations Department (ERD) on Sunday (November 30).
According to the report, foreign aid commitments from development partners during July-October were $1.208 billion, which is about 375% more than the same period of the previous fiscal year.
Last year, the commitment amount was only $254.57 million during the same period.
The ERD says that at the beginning of the last FY25 (July 2024), the pace of the foreign loan process slowed down due to the mass uprising and change of government.
Loan discussions and approvals for many projects were practically suspended.
As the situation normalized since the beginning of the current fiscal year, commitments have increased many times compared to the previous one.
There has also been positive progress in disbursements. Development partners disbursed $1.66 billion during July-October, up 38.51% from $1.20 billion in the same period last fiscal year.
During this period, Bangladesh repaid $1.585 billion in interest and principal on various external loans—almost the same amount as the disbursements.
ERD officials say the increase in commitments indicates a positive trend in project aid flows.
However, as debt repayment pressures mount, caution is needed in overall debt management.
