Bangladesh Foreign Debt Hits Record $114.98 Billion
Bangladesh's foreign debt reached a record $114.98 billion by June 2026, driven by increased public sector borrowing to manage economic fallout from Middle East conflicts.
Foreign debt in Bangladesh reached a record $114.98 billion by the end of the April-June quarter of 2026, according to data from the Bangladesh Bank. This represents a 3.65 percent increase from the $110.93 billion reported at the end of March.
The surge was primarily driven by the public sector, where debt rose by $4.19 billion to $95.10 billion. This rebound followed the government's acquisition of nearly $3 billion in budget support from bilateral and multilateral partners, including the World Bank and the Asian Development Bank, to mitigate economic impacts stemming from the Middle East conflict. This increase reversed a previous downward trend caused by the slow implementation of foreign-funded development projects.
In contrast, private sector foreign debt declined by $140 million to approximately $19.89 billion, a drop attributed to reductions in short-term loans, buyer's credit, and trade credit. Long-term borrowing continues to make up the bulk of the nation's obligations, totaling $100.64 billion. The total debt stock has grown significantly over two decades, rising from $20.65 billion in 2007.
These financial pressures coincide with worsening domestic conditions. Reports indicate that 2.1 million people in Bangladesh fell into poverty during the last fiscal year as power shortages and rising prices impacted employment and manufacturing.
