The government in the current budget estimated Tk75,390 crore to be sourced from the head of foreign borrowing, up by 19.63% from the original target of last fiscal year
Reduced flow of external resources poses a threat to achieving around 20% growth estimated for the current fiscal year, as disbursement of foreign funds during the first six months of 2019 caused a negative growth.
The amount of foreign aids was $3.31 billion in January-June against $3.34 billion in the same period of the previous year, according to the latest data of the Economic Relations Division (ERD).
“The flow of external aid declined by 27 million in the first half of the current year,” Syed Ashrafuzzaman, deputy Secretary, ERD under the finance ministry, told Dhaka Tribune.
He, however, said the situation would improve by the end of December.
Of the total, JICA disbursed $1.19 billion, World Bank $1.97 billion, Asian Development Bank $1.21 billion and Russia $877 million.
The government in the current budget estimated Tk75,390 crore to be sourced from the head of foreign borrowing, up by 19.63% from the original target of last fiscal year.
In 2018-19 FY, target on the head of external borrowing was set at Tk60,585 crore to finance part of budget deficit.
However, the target had to be revised downward to 53,883 crore in the last fiscal year.
Officials concerned at the ERD have said the poor implementation capacity stands as major roadblock to geting desired foreign funding from both the bilateral and multilateral lenders.
Excessive conditions attached to the foreign loans also remain a persistent hindrance to receiving expected loans, particularly from multilateral lending agencies like the WB, and bilateral development partners like China and India, they have added.
“We are in continued negotiation with our development partners for accelerating their fund release, given that the country is poised to undertake the next 8th five-year plan soon,” an additional secretary of the division said.
“If the committed funds are not released on a fast-track basis, things will be difficult to align our development goals with the Sustainable Development Goals of the United Nations,” he added.
“We are really worried.”
The issue would be raised prominently at the upcoming Bangladesh Development Forum (BDF) meeting next month in Dhaka, sources said.