The government’s all-round initiatives in the fiscal sector led to the rapid growth of the country’s economy over the last three years. One of the significant reasons for our economic boost is the rise in foreign loans and grants in the just-concluded fiscal year 2020-21 (FY21), even amidst the pandemic.
According to the Economic Relations Department (ERD) of the Ministry of Finance, of the total Tk 60,350 crore, around Tk 57,500 crore came as loans while the rest Tk 2,850 crore as grants. In FY21, Bangladesh got the highest loans from the World Bank, which had released US$270 crore equivalent to Tk 22, 950crore. Reportedly, the Asian Development Bank (ADB) gave the second-highest loans of US$170 crore, equivalent to Tk 14,450 crore.
with development partners
is now better than ever
These figures show, how our multinational development partners helped our economy amid this dire period. Experts opine that the pace of implementation of various development projects has also increased. Adding to that Bangladesh's relationship with development partners is now better than ever. Due to these reasons, the disbursement of foreign loans and grants has been increasing day by day.
However, the government should make sure that the country does not fall under debt burden while receiving such huge amounts of loans and grants. We know that external debt can be good for the economy if it can be exploited appropriately in the development projects as this would bring a long-term return.
The government and regulatory bodies should think of sustainable sources for boosting the economy with more money. This is because the government will face challenges after the next fiscal year as these types of funds and grants might not be available all the time.