Dhaka, May 25 -- Foreign aid disbursements, including loans and grants, to Bangladesh declined by 17.96 per cent during the first 10 months of the current fiscal year compared to the corresponding period of FY25, while fresh aid commitments fell sharply by more than 34 per cent, according to the latest data from the Economic Relations Division (ERD).

Released on Sunday, the Foreign Assistance Monthly Report FY2025-26 found that external debt servicing burden continued to rise, with repayment obligations on previously disbursed foreign loans increasing by 8.42 per cent year-on-year in US dollar terms and by 9.89 per cent in local currency.

The report shows all development partners disbursed a sum of $4.24 billion in the July-April period...