Bangladesh's external debt jumps 42% in 5yrs, repayment pressure doubles: World Bank
According to the World Bank's report, Bangladesh’s external debt amounted to 192% of its export earnings in 2024 and total debt-service payments accounted for 16% of exports during the same period
Bangladesh's external debt has risen sharply over the past five years, with total foreign borrowing climbing 42% amid rapidly increasing repayment pressure, according to the International Debt Report 2025 released by the World Bank today (7 December).
World Bank data shows that by the end of 2024, Bangladesh's total external debt stood at $104.48 billion, up from $73.55 billion in 2020. The calculation includes debts contracted by both the government and the private sector.
Although foreign borrowing has not grown significantly in recent years, the cost of servicing past loans has surged. In 2020, Bangladesh paid $3.73 billion in principal and interest.
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By 2024, the amount nearly doubled to $7.35 billion, underscoring mounting repayment pressure.
Over the past decade, Bangladesh borrowed heavily to finance several flagship infrastructure projects, including the nuclear power plant, metro rail, power plants, airport terminal expansion, river tunnel, and elevated expressways. Repayment has already begun for several of these mega projects, with more coming due soon.
Despite this rise in repayment obligations, loan disbursements have remained relatively flat. In 2024, net disbursement stood at $11.10 billion, only slightly higher than $10.22 billion five years earlier.
According to the report, Bangladesh's external debt amounted to 192% of its export earnings in 2024. Total debt-service payments accounted for 16% of exports during the same period.
The World Bank identifies Bangladesh as one of the countries where external debt repayment pressure is rising rapidly. While the report does not rank countries numerically, Sri Lanka is the only other South Asian nation flagged in a similar category.
Bangladesh remains among the top recipients of concessional loans from the World Bank's International Development Association (IDA). Together with Nigeria and Pakistan, the three countries receive 30% of total IDA commitments.
Bangladesh alone sourced around 26% of its total external debt from the World Bank, followed by the Asian Development Bank (ADB) and Japan.
