Highlights
- Bangladesh’s foreign debt has reached $113.51 billion, the highest ever.
- In the last three months of 2025, debt rose by $1.3 billion.
- The debt increased by $10 billion during the 18 months of the Interim Government.
- Both public and private sectors contributed to the debt rise.
- Economists warn that debt must be properly used to avoid waste.
Foreign Debt Hits Record High
Bangladesh’s foreign debt has increased to $113.51 billion, according to the latest report from Bangladesh Bank. The debt rose by $1.3 billion in the last three months of 2025. By comparison, at the end of September 2025, the debt was $112.21 billion. At the fall of the Awami League government, the country’s debt stood at $103.41 billion. This means the Interim Government’s 18-month period saw a $10 billion increase in foreign borrowing.
Reasons for Rising Debt
Experts say Bangladesh has been facing rising foreign debt pressure for several years. During the Awami League government, foreign loans were used for large infrastructure projects such as:
- Nuclear power plants
- Metro rail
- Power plants
- Airport terminals
- Tunnels under rivers
- Elevated expressways
After the Interim Government took office, the country borrowed further from various international lenders, including nearly $4 billion in the first year to pay government salaries and allowances.
Impact of Global Dollar Shortage
The Russia-Ukraine war since 2022 caused the Bangladeshi Taka to weaken against the US Dollar.
- The exchange rate rose from Tk 85 to Tk 122 per USD.
- This caused inflation and made life harder for ordinary citizens.
The Awami League government took steps like import control and foreign borrowing to stabilize the situation, but the foreign currency reserve continued to fall. The Interim Government later stopped the decline of reserves, stabilized the dollar exchange rate, and benefited from strong remittance growth and new foreign loans, according to Bangladesh Bank officials.
Read More: Bangladesh Railway officially honoured the Farmer for Preventing Major Train Accident
Debt Increase in Public and Private Sectors
During October–December 2025, both government and private sector debt rose.
- Public sector debt rose from $92.55 billion in September to $93.46 billion in December, a $0.9 billion increase.
- Private sector debt increased from $19.65 billion to $20.05 billion in the same period.
Economists Comment on Debt Situation
Dr. Zahid Hossain, former chief economist at the World Bank Dhaka office, said:
“বিদেশি ঋণের মধ্যে সরকারের ঋণই বেশি। বিভিন্ন প্রকল্প বাস্তবায়নে বিদেশি ঋণ দরকার আছে। তবে উদ্বেগের জায়গা হলো, আগে বিদেশি ঋণ নিয়ে অপচয় হয়েছে। সেগুলো যদি বন্ধ না হয়, তাহলে ঋণ বৃথা হয়ে যায়। আর যদি ঋণ নিয়ে ঠিকমতো ব্যবহার করা যায়, তাহলে পরিশোধ করার সক্ষমতা তৈরি হবে।”
Translation: “The government’s debt is higher than private debt. Foreign loans are necessary for project implementation. But the concern is that there has been waste with previous foreign loans. If that continues, the debt becomes useless. If loans are used correctly, the country will be able to repay them. But wasteful borrowing reduces effectiveness.”
He added:
“Compared to GDP, foreign debt is still at a manageable level. However, compared to foreign currency earnings, the interest payments have risen sharply. So while it seems manageable, repayment will be challenging.”
Over the past few years, economists had repeatedly warned against taking too much foreign debt, but the Awami League government continued borrowing from international sources.
Source: Amar Desh
