Dhaka: Bangladesh’s external debt has surged to $78 billion as of February 2026, with Finance Minister Amir Khosru Mahmud Chowdhury informing Parliament that repayment obligations are set to rise sharply in the coming years.
Addressing lawmakers in the Jatiya Sangsad, the minister stated that while the government continues to service foreign loans through annual budget allocations, the pace of borrowing and mounting liabilities are emerging as key fiscal concerns.
Debt Build-Up: Borrowing Outpaces Repayments
- Total external borrowing (FY2008–FY2026): ~$86 billion
- Total repayments (principal + interest): ~$31 billion
- Net increase: Significant expansion in debt burden
The sharp rise has been driven by infrastructure investments and external economic shocks, accelerating dependence on foreign financing.
Repayment Pressure Set to Surge
- 2026–2030: ~$26 billion in debt servicing
- By 2035: ~$51 billion total repayments projected
- Peak annual repayment: ~$5.5 billion by decade-end
This indicates a compressed repayment cycle, with obligations rising much faster than historical trends.
Risk Indicators: Still Stable, But Warning Signs Emerging
- Debt-to-GDP ratio: ~19% (within manageable range)
- Debt servicing-to-revenue ratio: ~16.5%
- Approaching thresholds flagged by the International Monetary Fund
While headline debt levels remain moderate, fiscal stress indicators suggest tightening financial flexibility.
