Foreign aid commitments fell sharply in fiscal year 2025-26 while debt servicing climbed to a record high, highlighting the country’s tightening external financing conditions as it grapples with slowing concessional inflows and rising repayment obligations.
Total foreign assistance commitments dropped 37 percent to $5.24 billion in FY26 from $8.32 billion a year earlier, according to provisional data from the Economic Relations Division (ERD).
The fall was driven by a sharp reduction in project loan commitments, which declined to $5.01 billion from $7.94 billion a year earlier. Grant commitments also fell to $233.78 million from $381.65 million.
Foreign aid disbursements also declined, though at a slower pace.
Bangladesh received $8.07…