The Bangladesh government is formulating strategies to bolster its domestic debt market, aiming to increase its share of marketable securities in the coming years. While the administration remains committed to issuing Islamic securities (Sukuks), plans for Eurobond issuances on the global market have been temporarily put on hold, as per a recent finance ministry document.
Given the looming fiscal deficits, projected at Tk 2,792.3 billion for FY2024-25 and Tk 3,170.7 billion for FY2025-26, equivalent to 5 per cent of GDP annually, the government emphasizes the importance of strategic domestic borrowing to address these deficits.
The focus lies on minimizing borrowing costs through traditional external creditors, which are preferred. The government aims to collect Tk 1,200.3 billion from external sources in FY2024-25 and Tk 1,306.4 billion in FY2025-26, constituting 2.1 per cent of GDP each year. Domestic sourcing is expected to contribute significantly more, targeting Tk 1,677.7 billion and Tk 1,864.4 billion over the same periods, representing 2.9 per cent of GDP.
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