Friday 25th of September 2026

Bangladesh’s Foreign Debt Hits Record High

Staff Correspondent »

  • Bangladesh’s foreign debt has once again set a new record. According to the latest data from Bangladesh Bank, as of June 2025, the country’s total external debt stood at $112.16 billion—equivalent to about $11,216 crore. In local currency (at Tk 122 per dollar), this amounts to nearly Tk 13.68 trillion.

    Within just six months, foreign borrowing surged by almost $9 billion, raising fresh concerns among economists. Experts note that the rise has been driven mainly by infrastructure projects, currency depreciation, and global economic pressures.

    Since 2008, external debt has expanded sharply—growing by $81 billion in the past 15 and a half years alone, much of it borrowed from the IMF, World Bank, ADB, JICA, and AIIB.

    While the debt-to-GDP ratio remains at a manageable level, economists warn that repayment pressures—particularly interest and principal payments—are mounting fast. Former World Bank chief economist in Dhaka, Dr. Zahid Hossain, stressed the need to curb wasteful spending and ensure loans are used productively to strengthen repayment capacity.

    Data shows that 82% of foreign debt lies in the public sector and 18% in the private sector. Government debt alone rose by 8.77% in just three months, reaching $92.37 billion by June.

    Currently, Bangladesh’s per capita external debt stands at $638 (around Tk 77,000)—a sharp rise from just over $257 a decade ago.

    👉 In the past ten years, Bangladesh’s external debt has nearly tripled—a trend that offers development opportunities but also poses growing repayment challenges for the economy.

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