Staff Reporter | Dhaka | Sunday, September 7, 2025
B
angladesh’s economy is facing mounting pressure from foreign debt. To implement major development projects, cover import expenses, and tackle the ongoing dollar shortage, the government has increasingly relied on external borrowing. But experts now fear that rising repayment obligations are pushing the economy toward instability.
According to data from Bangladesh Bank and the Economic Relations Division (ERD), the amount required for loan installments and interest payments in the current fiscal year is nearly double compared to previous years. This is straining the country’s foreign currency reserves and creating concerns about a widening budget deficit.
Economists point out that high-interest loans, along with the volatility in the dollar-taka exchange rate, are making debt servicing more difficult. If this trend continues, controlling inflation and maintaining economic stability will become increasingly challenging.
Economist Dr. Saiful Islam noted, “Bangladesh must take immediate and strict measures in managing foreign debt, otherwise the economy could face serious risks.”
