Foreign assistance disbursement increased despite pandemic: ERD

Foreign assistance disbursement and commitment both increased in Bangladesh in the first eight months of the current fiscal year thanks to the speedy release of funds and additional promises for tackling the pandemic, according to data of the Economic Relations Division (ERD) released today.

During the period, the development partners disbursed $5,899.62 million while it was $3,736.26 million in the last fiscal year.

ERD officials say a number of mega projects funded by Japan, including the Dhaka metro rail project, were being implemented in full swing as pandemic related restrictions have been relaxed.

A good amount of funds has been disbursed by the World Bank to support efforts aimed at tackling the pandemic along with regular loans.

Bangladesh has set an ambitious target to receive $12.98 billion in foreign assistance from the development partners in the current fiscal year.

The ERD data showed that Bangladesh spent around $3 billion to $3.5 billion annually from 2013-14 to 2016-17. Spending of foreign funds crossed $7 billion per year since the 2018-19 fiscal year.

The commitment of development partners also increased by 22 per cent year-on-year in the past eight months to $4.8 billion.

When a loan agreement is signed with a development partner, it is considered a commitment, meaning the fund is ready for utilisation.

The government has set a target to realise commitments for $6 billion in foreign aid this fiscal year.

An official of the ERD said they have some agreements in the pipeline which would be signed within June 2022.

Once inked, the commitment of foreign aid will cross the figure targeted.

During the past eight months, Bangladesh made debt repayments amounting to $1335.12 million while it was $1187.45 million during the corresponding period last fiscal year.