India Reduces Development Aid for Bangladesh by 40%

Canada has allocated $272.1 million in foreign aid for Bangladesh and the Indo-Pacific region, focusing on healthcare, women's empowerment, and climate change initiatives. This funding supports 14 projects in the region, with a significant emphasis on gender equality, sexual and reproductive health, and inclusive education.

The World Food Programme (WFP) has reduced monthly food aid for Rohingyas in Bangladesh from $12.50 to $6 per person starting in April, affecting over 1.1 million refugees in Cox’s Bazar and Bhashan Char. This follows a previous reduction in 2023 to $8, which led to 90% of camp residents struggling to access an adequate diet and over 15% of children suffering from malnutrition.

Japan is contributing an additional $3.2 million to enhance food security in Bangladesh's communities severely impacted by Cyclone Remal and floods in 2024, which affected nearly 18 million people. This funding will aid both immediate food needs and long-term recovery, particularly in rebuilding infrastructure such as roads, embankments, and bridges in the hardest-hit districts, including Khulna, Satkhira, and Cumilla.

Japan has provided $3.2 million to the International Organization for Migration (IOM) to assist approximately 500,000 flood-affected people in Noakhali, Lakshmipur, and Feni. The aid will support evacuation shelter repairs, livelihood restoration, and disaster resilience.

Japan has committed $1.8 million in food aid for Rohingya refugees in Cox's Bazar and Bhasan Char, benefiting over 191,000 people. The aid, provided through the World Food Program (WFP), will support malnutrition prevention, income-generating activities, and the rehabilitation of e-voucher outlets.

Net foreign financing fell by 67% to Tk 5,540 crore in July-November FY25, a decline of Tk 11,086 crore from the same period in FY24, as loan repayments outpaced inflows. Bangladesh Bank cleared $3.3 billion (90%) of overdue foreign payments after the August 2024 political shift, while lenders tightened disbursements.