Bangladesh Received a Record of $6.79 Billion in Foreign Aid This FY

In the first three quarters of the current fiscal year, Bangladesh received a record $6.79 billion in foreign aid, which is 55 percent more than last fiscal year.

In the fiscal year (FY) 2020-21, external development partners released $4.38 billion worth of assistance during the July-March period. Japan government, Economic Relations Division (ERD) officials said Saturday that the increased concessional-aid inflow comprised the record- highest fund disbursement by the Asian Development Bank.

According to ERD data, out of the total amount of $6.79 billion, the ADB alone supplied $1.91 billion and Japan $1.57 billion. A senior ERD official said the aid supply swelled for special funds from the second-largest multilateral partner, ADB, the largest bilateral donor, Japan, and some other donors in the first quarter. He also said, “We expect more than $9 billion of total foreign assistance at the end of FY 2021-22”.

The World Bank also disbursed $834.55 million, the most significant multilateral development partner, while Russia provided $971 million. The partners also confirmed a significant amount of medium- to long-term loans and grants by signing deals worth $5.43 billion.

Dhaka received $6.61 billion in loans and $180.81 million in grants out of the aid disbursed so far in the current fiscal. In the first nine months of FY22, external development financiers committed $5.43 billion, an increase of $1.42 billion from FY21. The commitment includes $5.26 billion in loans and $166.37 million in grants. As a result, Bangladesh’s debt servicing swelled during the July- March period as the country paid $1.59 billion. Out of the repayment sum, $1.18 billion has been paid as principal and $411.65 million as interest for the outstanding loans.