Bangladesh's total debt reaches Tk 22.06 trillion, minister says

Bangladesh's total debt has reached Tk 22,06,462 crore, with foreign debt accounting for Tk 9,59,311 crore, according to Finance Minister Amir Khosru Chowdhury. He disclosed these figures in parliament while addressing questions about the nation's financial standing.

The government is actively working to manage and reduce its debt burden. A key strategy involves increasing tax and non-tax revenue collection, with a target revenue-to-GDP ratio of 10.4 percent for the current fiscal year. This aims to lessen the country's reliance on borrowing.

Furthermore, Bangladesh has adopted a Medium-Term Debt Management Strategy (MTDS). This plan focuses on reducing borrowing costs, minimizing associated risks, and structuring borrowing activities for more effective debt portfolio management. The government is also shifting from a debt-based economy to an investment-based one, as outlined in the current fiscal year's budget. This approach anticipates that higher returns on government investments will boost revenue and decrease the need for deficit financing through loans.

Diversification of the investment profile is another priority to cut interest expenses. The government is exploring alternative financing methods such as Sukuk and asset securitization. While foreign loans continue to be sourced from bilateral and multilateral partners, there is a strong emphasis on securing concessional and long-term loans with low interest rates. Project proposals involving foreign loans undergo rigorous scrutiny to prevent unnecessary external financing and ensure alignment with national economic goals and the government's election manifesto.

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The government's election manifesto promised to transform Bangladesh from a debt-dependent economy to an investment-dependent economy. To this end, we have been working to keep foreign debt at a sustainable level since the formation of the government.