Foreign aid to Bangladesh in July-August 2023 saw a significant drop of 14.5%, amounting to $739.06 million in medium-to-long-term loans (MLTs) and grants compared to $864.29 million in the same period the previous fiscal year. During the same time frame, foreign loan repayments increased by over 34%. Debt-servicing liability is rising, with the government repaying $400.50 million against outstanding debts.
Additionally, merchandise exports in September fell by 9.83% to $4.31 billion compared to the previous month, and remittances decreased by around 16% from August. The decline in remittances, exports, and foreign aid inflows raises concerns for Bangladesh’s macroeconomy, which is already under pressure due to dwindling foreign currency reserves. Experts fear macroeconomic challenges in the coming months as the government focuses on political issues rather than economic recovery. Foreign aid commitments have increased but remain insufficient to counter the economic challenges.
Source for more details:
