Foreign debt increased by $10 billion during Interim govt period

Bangla Press Desk:   During the tenure of the interim government led by Muhammad Yunus, the country’s external debt has increased significantly. According to the latest data from Bangladesh Bank, total foreign debt stood at $113.51 billion at the end of December 2025, the highest in the country’s history.

Bangladesh Bank data shows that external debt increased by $1.30 billion in just three months from October to December 2025. At the end of September, the debt was $112.21 billion. Earlier, when the Awami League government fell on August 5, 2024, the total foreign debt was $103.41 billion. This means that within about one and a half years, the debt has increased by around $10 billion.According to central bank statistics, public sector external debt rose from $92.55 billion at the end of September last year to $93.46 billion by December.

On the other hand, private sector debt increased from $19.65 billion to $20.05 billion during the same period. As a result, the public sector has been the main driver of the overall debt increase.

Analysts say the government has been borrowing more to finance development expenditures and manage the budget deficit. Over the past decade, Bangladesh has taken on substantial foreign loans to implement major infrastructure projects, including nuclear power plants, metro rail, expressways, tunnels, power plants, and airport expansion projects. This trend continued during the interim government period. In particular, around $4 billion in new loans has been taken to address budget deficits, pay government salaries and allowances, and manage economic pressures.

According to experts, the bigger concern than the size of the debt is the burden of interest and repayments. As large repayments begin in the coming years, pressure on foreign currency reserves may increase, especially if export earnings and remittances do not grow as expected.

Economists say that while external financing is necessary to sustain development, debt management has now become a major challenge. They emphasize ensuring effective and productive use of loans, increasing exports and remittances, and exercising caution and risk assessment in taking on new debt.

Overall, analysts believe that although external debt is not immediately alarming, its proper management will determine whether it becomes a burden on the economy or a driver of development in the future.Source: daily Sun

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