Bangladesh’s growing debt crisis worsens economic hardship
Dhaka, Apr 25:
Bangladesh is expected to face a heavy external debt repayment burden of about $26 billion between fiscal years 2026 and 2030, according to a Dhaka Tribune report.
This is significant compared to the $40 billion the country has repaid in total over the 54 years since independence, highlighting a sharp rise in obligations.
As of June, Bangladesh’s external debt stood at $77 billion, equal to about 19% of national income, with the ratio increasing over time. Debt servicing already consumes around 16.5% of government revenue, close to the IMF’s risk threshold of 18%.
Total repayments from 2026 to 2035 are projected at $51 billion, with annual payments peaking at about $5.5 billion by 2030.
The report links the rising debt to global shocks like the COVID-19 pandemic, the Ukraine war, and Middle East tensions, alongside domestic factors such as costly infrastructure projects (including the Ruppur Nuclear Plant, Padma Rail Link, and Karnaphuli Tunnel), weak tax collection, and stricter lending terms from creditors.
