Bangladesh’s foreign aid inflow falls 13.4% in July

Bangladesh’s foreign assistance disbursement fell 13.4 percent year-on-year to $180.18 million in July, the first month of fiscal 2026-27, while the country’s debt servicing bill rose to $453.23 million.

According to the provisional Foreign Assistance Monthly Report prepared by the Economic Relations Division (ERD), Bangladesh received $179.67 million in loans and just $0.51 million in grants during July 2026.

In the same month last year, the country received $208.04 million in foreign assistance, including $207.73 million in loans and $0.31 million in grants. Loan disbursement therefore dropped by $28.06 million, or about 13.5 percent.

Grant inflows, however, increased by $0.20 million, marking a rise of nearly 64.5 percent.

No assistance was disbursed under the food aid category in either July 2026 or July 2025.

Foreign aid commitments also declined sharply at the start of the new fiscal year. Bangladesh secured commitments worth $14.05 million in July, all in grants, compared with $83.46 million a year earlier. The July 2025 commitments comprised $77.46 million in grants and $6 million in loans.

Meanwhile, Bangladesh paid $453.23 million in foreign debt servicing during July, up 1.5 percent from $446.68 million in the same month of 2025.

The latest payment included $341.72 million in principal repayments and $111.51 million in interest. A year earlier, principal repayment stood at $327.72 million and interest payments at $118.96 million.

In local currency, debt servicing amounted to Tk5,587.96 crore in July, including Tk4,213.10 crore in principal and Tk1,374.86 crore in interest. The corresponding figure in July 2025 was Tk5,447.79 crore.

The contrasting figures—lower foreign assistance and higher debt servicing—come as Bangladesh begins FY2026-27 with greater repayment obligations. Foreign loans and grants remain an important source of financing for development projects in infrastructure, energy, transport, health and other priority sectors.

The July figures are provisional and may be revised in subsequent monthly reports.