The overall government debt grew 13.29 per cent to Tk 18,23,282 crore in the financial year 2024-25 with the growth in borrowing from external sources more than doubling compared to the domestic loan.聽
The foreign loan stood at Tk 8,12,077 crore at the end of June 30, 2025 in place of Tk 6,72,978 crore on June 30, 2024, registering some 20 per cent growth in the eventful year following the ouster of the Awami League regime amid a mass uprising.
Against the high growth in the overseas borrowing, the government domestic debt grew 8.3 per cent to Tk 10,20,205 crore on June 30, 2025 from Tk 9,44,335 crore on June 30,2024, according to the Debt Bulletin released by the Finance Division on November 13.
The bulletin noted that the government鈥檚 current level of borrowing remains broadly manageable when assessed relative to the overall size of the economy.
However, certain underlying trends indicate emerging fiscal pressures. These include, notably, a rise in debt servicing costs and an increased reliance on external financing, which often comes with higher associated costs, added the bulletin.聽
The interest payment on the external loans increased 21 per cent in FY25, while that on the domestic debt grew 16 per cent during the same financial year.
In August 2025, a joint World Bank-International Monetary Fund report on Bangladesh鈥檚 debt sustainability said that the country was at a moderate risk of external and overall debt distress, with limited space to absorb shocks.
The change of risk from low level in the June 2024 assessment to moderate level is largely attributed to a substantial downward revision of export data for FY23 and FY24, which carries forward over the projection period.
The Debt Bulletin noted that effective management of interest expenses was imperative to ensuring macroeconomic stability, protecting its foreign exchange reserves and fostering sustainable economic growth.
It calls for rigorous scrutiny and careful selection of new development projects, substantial improvement in project execution efficiency, robust and accelerated domestic resource mobilisation, and increased and diversified export earning efforts at ensuring long-term debt sustainability.