Foreign aid inflow surges 55% in Jul-Mar of FY22

Foreign aid inflow to the country jumped by 55 per cent to $6.7 billion in nine months of the current fiscal year as development projects are gathering pace with the gradual easing of the Covid-19 situation.

The major international development partners released $6.7 billion in loans and grants from July to March of FY22, which was $4.38 billion in the same period a year ago, the latest data from the Economic Relations Division (ERD) shows.

Of the amount, $6.6 billion came in loans and $180.81 million in grants.

In the same period of the previous fiscal year, the government received $4.2 billion in loans and $147.45 million in grants from the lenders.

The country also received a significant amount of foreign aid commitment, to the tune of $5.4 billion in loans and grants, from July to March of this fiscal year, the ERD data shows. The figure was $3.9 billion in the same period of FY21.

A senior ERD official told The Business Post the bilateral and multilateral development partners, such as the Asian Development Bank (ADB), the World Bank, the Japan International Cooperation Agency, and the Islamic Development Bank, provide concessional loans every year for the development of Bangladesh.

“The pandemic is subsiding, putting the government in a comfortable situation as the development partners are disbursing funds for completing the ongoing projects in the country,” he added.

Between July and March of FY22, the ADB disbursed the highest amount, $1.9 billion, and Japan the lowest, $1.5 billion.

Besides, China disbursed $563.19 million, the World Bank $834.55 million, Russia $971 million, the Asian Infrastructure Investment Bank $290.09 million, India $178.15 million, and other partners $472.71 million.

Meanwhile, during these nine months of FY22, the government repaid $1,595.4 million in interest and principal against its total outstanding loans, which was $1,447 million during the same period of the last fiscal year.

Of the amount, the government repaid $1,183.75 million in principal and $411 million in interest.