Bangladesh's Public Debt Tops Tk 22 Lakh Crore As Domestic Borrowing Rises

(MENAFN- IANS) New Delhi, May 9 (IANS) Bangladesh's public debt climbed past Tk 22 lakh crore by December 2025, with the government increasingly relying on domestic borrowing to reduce exposure to foreign exchange risks and strengthen fiscal stability, a report has said.

The report published in The Daily Star highlighted that the finance ministry's latest quarterly bulletin showed that total public debt rose sharply over the last few years, increasing from Tk 13.44 lakh crore in June 2022 to Tk 18.9 lakh crore by June 2024.

The figure crossed Tk 22 lakh crore by the end of December 2025, it said.

The report further stated that around Tk 3 lakh crore in additional debt was accumulated during the tenure of the interim administration.

While domestic borrowing accounted for the larger share of the debt stock. By December 2025, domestic liabilities stood at Tk 12.5 lakh crore, while foreign debt reached Tk 9.59 lakh crore.

Meanwhile, domestic debt represented nearly 57 per cent of the government's total liabilities, compared to 43 per cent from external sources.

The report noted that total government borrowing during the July-December period of the current fiscal year increased by 13 per cent or Tk 62,428 crore, compared to the corresponding period a year earlier.

Moreover, foreign borrowing during the same period declined sharply by 59 per cent to Tk 10,130 crore, while domestic borrowing surged 70 per cent to Tk 52,298 crore, according to the report.

The report also showed that the government borrowed Tk 19,470 crore directly from the central bank during the period.

In addition, interest payments continued to rise due to the growing debt burden and total interest payments during July-December increased 22 per cent year-on-year to Tk 71,253 crore.

While interest costs on domestic debt alone rose 25 per cent to Tk 61,866 crore.

MENAFN09052026000231011071ID1111089988