The foreign assistance inflow plunged by 25 per cent in July-November period this year as the development partners, including Asian Development Bank (ADB), cleared only USD 2.46 billion during the period.
The overseas assistance had amounted to USD 3.09 billion during the previous year’s same period, according to the economic relations division (ERD).
Bangladesh has been grappling with a dollar crisis as its forex reserve shrank alarmingly. The country is now in negotiations with the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB), to secure a budget support of USD 6.5 billion.
The release of foreign assistance ebbed down against such a backdrop, intensifying the prevailing economic woes.
The country is dealing with another adversity as it now has to repay higher foreign debt installments than before.
The government spent USD 880 million to repay foreign debts in July-November period, which was USD 860 million in the previous year’s corresponding period.
The amount rose by USD 20 million, but it now costs much higher in local currency due to the inflated exchange rate of the greenback. In local currency, the government paid Tk 84.3 billion to settle the installments of foreign loans in July-November period, which was Tk 74.02 billion in the previous year.
The overseas loans are repaid in dollars.
According to the ERD, the overseas development partners tightfisted on fund disbursement to a significant extent while the commitments also nosedived. The development partners promised for only USD 460 million of assistance during the five months, against the promise of USD 3.93 billion a year ago.
All these happened due to the persistent economic crisis. It also slowed down the implementation of the annual development plan (ADP).