The central bank published the latest foreign debt report today, showing a rise in borrowing during the October-December quarter of 2025.

TDS Desk:

Bangladesh’s foreign debt increased by $1.30 billion in the October-December quarter of 2025, taking the total outstanding amount to $113.51 billion, according to data released by Bangladesh Bank.

The central bank published the latest foreign debt report today (25 March), showing a rise in borrowing during the period.

At the end of the July-September quarter of the same year, foreign debt stood at over $112 billion. In the June quarter, it was $113.58 billion.

Senior officials of Bangladesh Bank said the increase was mainly driven by higher foreign borrowing in both the public and private sectors.

According to the data, foreign debt in the public sector stood at $93.46 billion, while the private sector accounted for $20.05 billion.

Borrowing increased in both sectors compared with the September quarter.

Dr Zahid Hussain, former lead economist of the World Bank’s Dhaka office, said, “Foreign loans are necessary for development projects. However, the most important matter is whether the foreign debt being taken is being utilised properly.”

He added, “If the funds from foreign loans are used in projects that improve the lives of the people and yield profits, then it is correct. If that is not done, then foreign debt will stand as a burden.”

A senior Bangladesh Bank official said proper utilisation of foreign loans would strengthen repayment capacity, while misuse could create additional pressure on the economy.

The official added that the government should monitor whether the funds are being used appropriately.

Regarding the increase in the last quarter, a senior Bangladesh Bank official said, “At that time, the increase was mainly due to inflows of dollars into ACU-related accounts and offshore banking units.

“Essentially, ACU payments were not made during the December quarter, so the amount is being reflected in the current figures. In addition, foreign debt rose as around $400 million was received from abroad into offshore banking units.”