In its final year in power, the Government of Bangladesh borrowed more than $9 billion from foreign sources, significantly increasing the country’s external debt burden. Economists warn that without proper utilization of these funds, the pressure of repayment could intensify in the coming years.
According to data from the Bangladesh Bank, the country’s total external debt stood at approximately $113.51 billion by the end of 2025—equivalent to around Tk 14 lakh crore. Of this, about $93 billion is owed by the public sector, while the private sector accounts for just over $20 billion.
Experts say Bangladesh has long relied on foreign borrowing to finance development projects and budget deficits. However, weaker-than-expected domestic revenue collection in recent years has further increased this dependency.
Economist Dr. Zahid Hussain emphasized that borrowed funds should be invested in sectors capable of generating foreign currency earnings. Otherwise, both domestic and external debts risk becoming a heavy burden for future generations.
Meanwhile, Dr. M. Masrur Riaz noted that any decision to take on new loans should be based on thorough analysis—considering economic returns, project necessity, timing, and cost efficiency. He also stressed the importance of assessing the country’s capacity to meet foreign currency repayment obligations.
Data indicates that around 27% of the total external debt is long-term. Within the public sector debt, approximately $45 billion comes from multilateral sources, $32 billion from bilateral partners, and around $6 billion from the International Monetary Fund.
Economists are urging the government to boost domestic revenue collection alongside borrowing. Without tackling tax evasion and corruption, they warn, it will be difficult to ease the growing pressure on the economy.
For context, when the government assumed office in 2009, Bangladesh’s external debt was just over $23 billion. The sharp rise since then highlights the growing challenges facing the country’s economic management.
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