Economy at Risk: Foreign Debt Surges Despite Lack of Focus on Development
Despite lower spending on development projects, foreign debt in Bangladesh is increasing rapidly. To meet the budget deficit and protect foreign exchange reserves, the government is relying on quickly disbursable budget support loans instead of project loans. The depreciation of the taka has further compounded the situation. As a result, the country’s foreign debt has nearly doubled in just three years.
Private Sector in Crisis Amid Contractionary Monetary Policy
The General Economics Division (GED) of the Planning Commission, in its Economic Update and Outlook for October 2025, has reported that although inflation has slightly eased, a contractionary monetary policy has led to stagnation in private sector credit and investment. The agency also warned that economic volatility could intensify ahead of the national elections.
IMF Sets Foreign Loan Cap for Bangladesh for the First Time
For the first time, the International Monetary Fund (IMF) has set a limit on how much foreign loan Bangladesh can take. In the current fiscal year (2025-26), Bangladesh cannot take more than USD 8.44 billion in foreign loans. Previously, there was no such restriction from the IMF on Bangladesh.
Bangladesh Is a South Asian Time Bomb: Chellaney Warns of Islamist Violence, Repression, and Economic Collapse
Bangladesh is facing a deepening crisis marked by escalating human rights violations, rising Islamist influence, and economic decline, according to a recent opinion piece by Brahma Chellaney, Professor Emeritus of Strategic Studies at the Center for Policy Research in New Delhi and Fellow at the Robert Bosch Academy in Berlin.
Page 1 of 1.