Dhaka, Feb. 26 -- Bangladesh's foreign debt servicing has outpaced the inflow of overseas aid in the first seven months of the current fiscal year, reflecting a growing strain on the country's economy.

According to the latest data released by the Economic Relations Division (ERD) on Thursday, development partners and international lending agencies disbursed $2.64 billion in loans and grants between July and January of the 2025-26 fiscal year.

During the same period, the government had to pay out $2.67 billion to cover the principal and interest on existing foreign debts.

The figures highlight a sharp decline in aid inflow compared with the previous 2024-25 fiscal year, when disbursements reached $3.93 billion during the same seven-mont...