Bangladesh’s foreign debt stock rises 8.6% in one year: World Bank

Bangladesh’s total outstanding external debt increased by 8.6% in 2025 compared with the previous year, according to the World Bank.

The country’s foreign debt has nearly tripled over the past decade, rising from $38.77 billion in 2015 to $113.43 billion by the end of 2025. At an exchange rate of Tk125 to the dollar, the outstanding debt amounts to approximately Tk14.18 trillion.

The figures were revealed in the World Bank’s International Debt Report 2026. According to the report, Bangladesh’s external debt continues to grow despite new borrowing, repayments of existing loans and other adjustments.

A substantial share of the country’s external debt is owed to multilateral development partners. Bangladesh owes a combined $51.14 billion to institutions such as the World Bank and the Asian Development Bank (ADB). Of this amount, $22.63 billion is owed to the World Bank and $17.51 billion to the ADB.

Bangladesh also has significant liabilities to bilateral lenders, including Japan, China, India and Russia. Its total debt to these countries stands at $32.64 billion, including $12.72 billion owed to Japan and $9.02 billion to Russia.

In addition to public borrowing, the private sector has accumulated nearly $10 billion in external debt. The country also has around $15 billion in short-term foreign debt.

Despite the rising debt stock, the World Bank says some indicators of Bangladesh’s debt-servicing capacity remain relatively manageable. External debt currently stands at 24% of the country’s gross national income (GNI), an increase of around six percentage points over the previous year.

However, the ratio of external debt principal and interest payments to export earnings has declined to 16%, down 3.8 percentage points from the previous year. This means Bangladesh spends $16 out of every $100 earned from exports on servicing its foreign debt. The decline in this ratio is viewed as a positive indicator of the country's ability to meet its debt obligations.

Alongside the growth in outstanding debt, the amount Bangladesh spends on repayments has also risen substantially.

According to the Economic Relations Division (ERD), Bangladesh repaid $1.1 billion in external debt in the 2012-13 fiscal year. The amount increased to $2.01 billion in 2021-22 and reached nearly $3 billion in 2022-23.

In the 2025-26 fiscal year, the country spent approximately $4.5 billion on principal and interest payments on foreign loans. This represents an increase of more than fourfold over 14 years.

Bangladesh is expected to face mounting pressure from external debt repayments in the coming years as repayment schedules for several major infrastructure and development projects approach.

Repayments on loans taken for the Rooppur Nuclear Power Plant and the third terminal of Hazrat Shahjalal International Airport are due to begin soon. A significant portion of the financing for these projects is owed to Japan.

Meanwhile, Bangladesh has already begun repaying loans for the Karnaphuli River Tunnel and the metro rail project.