Amid Bangladesh’s dwindling foreign reserves at $19.97 billion, a staggering $46.47 billion in foreign aid remains trapped due to project execution failures. In FY2023 alone, unutilized aid reached $44.70 billion, signifying a concerning trend. Despite $7.17 billion in confirmed aid for FY2023-24, only $4.39 billion was disbursed, exacerbating economic strains. Development partners disburse aid as projects progress. Inadequate progress or incomplete projects lead to unspent funds, increasing the unused aid in the pipeline.
Over the past five years, $48.11 billion has been added to the aid pipeline. If unaddressed, this backlog could surpass $50 billion, intensifying pressure on the balance of payments. Urgent reforms are imperative to streamline project execution, release trapped aid, and bolster economic stability. Hence, collaboration between government agencies and stakeholders is essential for effective implementation and speed up progress.