Dhaka, Aug. 2 -- Bangladesh witnessed a sharp decline in foreign assistance commitments in the 2025-26 fiscal year, while debt servicing on external loans increased significantly, according to provisional data released by the Economic Relations Division (ERD).

The latest Foreign Assistance Monthly Report showed that total foreign aid commitments stood at USD 5.24 billion during FY2025-26, down from USD 8.32 billion in the previous fiscal year, marking a decline of nearly 37 per cent.

The drop was driven entirely by lower project assistance commitments, which fell to USD 5.01 billion in loans and USD 233.78 million in grants, compared with USD 7.94 billion in loans and USD 381.65 million in grants in FY2024-25. No food assistance commitm...