Economic
Bangladesh foreign aid disbursement drops 26% in first eight months of FY26
Foreign aid disbursement to Bangladesh fell 26% year-on-year during July–February 2025–26, with development partners releasing $3.05 billion in loans and grants, according to the Economic Relations Di
Foreign aid disbursement to Bangladesh declined by 26% year-on-year in the first eight months of the 2025–26 fiscal year, compared to the same period of the previous year. Between July and February, development partners and international lending agencies disbursed $3.05 billion in loans and grants, down from the previous year’s level, reflecting shifts in donor priorities and global funding conditions. The Economic Relations Division attributes the drop to both slower project approvals and a realignment of external assistance toward concessional loans rather than grants. The decrease raises concerns about Bangladesh’s ability to finance critical infrastructure and development projects amid ongoing macroeconomic stabilization efforts and the upcoming transition out of least developed country status.
- Status
- active
- Location
- Dhaka, Bangladesh
- Date added
- 2026-03-31 12:00 UTC
- Added by
- bodglobalapdrt
- Last updated
- 2026-03-31 12:00 UTC
- Source
- The Financial Express
- Connected threats
- Not provided