Public debt hits Tk22.06 lakh crore

Bangladesh’s total outstanding public debt has reached Tk22,06,462 crore, including Tk9,59,311 crore in external debt, Finance Minister Amir Khosru Mahmud Chowdhury informed Parliament on Sunday.

The finance minister disclosed the figures while responding to a question from Golam Rasul MP during the question-and-answer session in the House.

He said the government is placing greater emphasis on increasing both tax and non-tax revenue to ease the mounting pressure of domestic and external debt.

For the current fiscal year, the revenue-to-GDP ratio has been targeted at
around 10.4 per cent, with the primary objective of reducing reliance on borrowing through higher revenue mobilisation.

Amir Khosru said the government has also adopted a Medium-Term Debt Management Strategy (MTDS) aimed at lowering borrowing costs, minimising risks and ensuring that borrowing is carried out under a structured framework to improve the management of the country’s overall debt portfolio.

He said the government has initiated measures to shift Bangladesh from a debt-based economy to an investment-based economy, as outlined in the budget for the current fiscal year.

Under this strategy, improved returns on government investments are expected to boost revenue collection and reduce the need to finance budget deficits through additional borrowing.

The finance minister said the government is also focusing on diversifying its investment profile to curb interest expenditure.

As part of this effort, initiatives have been taken to expand alternative financing options through Sukuk, asset securitisation and other financial instruments.

Although Bangladesh continues to receive foreign loans from bilateral and multilateral development partners, priority is being given to concessional, long-term financing with lower interest rates, he added.

Replying to a separate question from Shahjahan Chowdhury MP, Amir Khosru said Bangladesh repaid foreign debt amounting to US$4.65 billion during the 2025–26 fiscal year, comprising US$3 billion in principal repayments and US$1.65 billion in interest payments.

“The government’s election manifesto pledged to transform Bangladesh from a debt-dependent economy into an investment-dependent economy. Since assuming office, we have been working to keep foreign debt at a sustainable level,” the finance minister said.

He added that all project proposals involving external financing, along with the associated loan agreements, are being subjected to rigorous scrutiny before approval to ensure that unnecessary projects are not undertaken with foreign borrowing.

At the same time, he said, the government is ensuring that externally financed projects are aligned with its broader objectives of restructuring and stabilising the economy, while remaining consistent with the commitments outlined in its election manifesto.