Bangladesh saw a sharp decline in both foreign aid disbursement and new aid commitments during the first two months of fiscal year 2026-27, while repayment of principal and interest on existing foreign loans increased.
According to updated provisional data from the Economic Relations Division (ERD) of the Ministry of Finance, Bangladesh received $294.56 million in foreign assistance during July and August, compared with $750.07 million during the same period of FY2025-26. This represents a year-on-year decline of $455.51 million in aid disbursement.
Of the total amount disbursed during the two-month period, $3.19 million came as grants and $291.37 million as project loans. No funds were disbursed as food assistance during the period.
New foreign aid commitments also remained almost unchanged at a low level. Bangladesh secured commitments worth $240.39 million during July-August, including $97.11 million in grants and $143.28 million in project loans.
During the corresponding period of the previous fiscal year, total foreign aid commitments stood at $243.81 million.
While aid disbursement and new commitments declined, the country's foreign debt repayment burden increased.
Bangladesh repaid a total of $698.92 million in foreign loans during July and August, equivalent to around Tk8,626 crore. In the same period of FY2025-26, the country had repaid $667.11 million, or around Tk8,131 crore.
Of the amount repaid during the first two months of the current fiscal year, $516.04 million, equivalent to around Tk6,369 crore, went toward principal payments.
The remaining $182.88 million, or approximately Tk2,257 crore, was paid as interest on foreign loans.
