Authorities must optimize utilization of foreign loans

In a worrying revelation, the unused foreign loans in the government’s pipeline have surged to a staggering $48.44 billion in November last year, marking a significant increase from $44.7 billion just five months ago the same year.

This disconcerting trend sheds light on the country’s inability to harness cheaper funds readily available for vital projects.

The annual report of the Economic Relations Division (ERD) for 2022-2023 reveals that the ballooning aid under disposal has led the government to set an ambitious 27 percent higher foreign loan disbursement goal at $11.78 billion for the current fiscal year.

This heightened target comes despite a sluggish disbursement of external loans in the first five months of 2023-24, where the government utilized only $2.12 billion between July and November.

The prospect of the unused foreign loans surpassing $50 billion by the end of the ongoing financial year is looming large.

A finance ministry official pointed out that although the flow of foreign loans has accelerated, the utilization capacity of ministries and divisions has not improved proportionately.

The ERD report indicates that in the last five years leading up to FY23, $48.11 billion has been added to the foreign loan commitment pipeline.

These funds, provided by development partners to help Bangladesh overcome the crisis stemming from the COVID-19 pandemic, are meant to be disbursed within the next five to six years.

However, their release is directly contingent on the successful implementation of projects.

The unutilized foreign loans represent a missed opportunity for economic growth and development.

The government must take swift measures to enhance the efficiency of project implementation, streamline bureaucracy, and address bottlenecks hindering the optimal use of available funds.

The citizens have the right to expect accountability and transparency in managing these vital resources.

As concerned citizens, we call upon the incoming government to prioritize and expedite the utilization of foreign loans for the betterment of the nation.

The potential benefits of these funds can only be realized through a concerted effort to overcome bureaucratic hurdles and ensure projects are executed with efficiency and transparency.

Let us not squander this opportunity for progress and development – the time for action is now.