Published: 12:26 AM, 29 October 2026
Foreign aid commitments rise 40pc in Q1 of FY27
Foreign loan and grant commitments to Bangladesh rose by nearly 40 percent in the first quarter (July-September) of the current fiscal year 2026-27, according to the latest data from the Economic Relations Division (ERD).
Development partners committed US$1.273 billion in loans and grants during the July-September period, up from US$910.67 million in the same period of the previous fiscal year, marking a year-on-year increase of 39.8 percent.
Of the total commitments received during the first three months of FY27, loans accounted for US$1.14758 billion, while grants amounted to US$125.45 million.
The increase in new commitments could create opportunities for additional foreign financing for development projects in the coming months.
However, the actual availability of the funds will depend on disbursement schedules, project readiness and fulfilment of relevant conditions.
Meanwhile, a major foreign financing initiative is underway for the modernisation and expansion of Eastern Refinery Limited, the country's sole oil refinery. The Islamic Development Bank (IsDB) has committed around US$1 billion to the project.
If implemented, the financing is expected to help increase the country's oil-refining capacity and strengthen energy security. Despite the rise in new commitments, actual foreign aid disbursements declined during the quarter.
Development partners disbursed US$662.31 million in foreign assistance in July-September of FY27, down from US$1.14859 billion in the corresponding period of the previous fiscal year.
Of the total assistance disbursed in the first quarter, project aid amounted to US$652.31 million, comprising US$541.74 million in loans and US$110.57 million in grants. Another US$10 million was disbursed as food aid in the form of grants.
Meanwhile, Bangladesh spent US$1.35123 billion on repaying the principal and interest of foreign loans during the first quarter of FY27, compared with US$1.27995 billion in the same period a year earlier, representing an increase of 5.6 percent.
According to ERD data, the country repaid US$858.92 million in foreign loan principal during July-September, up from US$816.99 million in the corresponding period of the previous fiscal year.
Interest payments also increased to US$492.31 million during the quarter from US$462.96 million a year earlier, reports BSS.
Foreign aid commitments represent pledges of future financing by development partners, while disbursements refer to funds actually released for projects and programmes.
Ensuring timely disbursement of committed funds and their effective utilisation in development projects remains crucial alongside the increase in new commitments.
