Bangladesh’s External Debt Reaches $113.44 Billion, World Bank Reports

Dhaka:Bangladesh's external debt has surged to $113.44 billion by the end of 2025, as reported by the World Bank.

According to Bangladesh Sangbad Sangstha, the International Debt Report 2026 from the World Bank Group highlights that Bangladesh's external liabilities have nearly tripled over the last decade, rising from $38.77 billion in 2015. The total debt includes $89.51 billion in public and publicly guaranteed debt, $9.87 billion in private nonguaranteed debt, and $14.06 billion in short-term debt.

The largest portion of this debt is public and publicly guaranteed, with multilateral creditors holding $51.14 billion and bilateral creditors holding $32.65 billion. Private creditors account for $5.72 billion in this category. Within multilateral lenders, the International Development Association (IDA) of the World Bank is the largest contributor with $22.64 billion, followed by the Asian Development Bank (ADB) at $17.52 billion. Japan leads as the largest bilateral creditor with $12.72 billion, trailed by Russia at $9.02 billion.

The report indicates that Bangladesh's external debt equaled 210% of its exports in 2025, a 6.7% increase since 2015. The debt-to-GNI ratio also rose by 5.9% to 24%. However, debt service relative to both exports and national income has decreased, with debt service as a share of exports dropping to 16% and as a share of GNI lowering to 2%.

Regionally, the World Bank's data includes Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka, which together saw a 6.4% increase in external debt from 2024. India holds the highest regional external debt at $763.52 billion, with Bangladesh and Sri Lanka following at $113.44 billion and $57.66 billion, respectively. Meanwhile, Pakistan, categorized under a different regional grouping, has an external debt of $135.11 billion.

The report also notes a global trend, with developing countries' external debt reaching a record $9.4 trillion in 2025, driven by increased private financing and bond issuance by public entities. The return of private lending to low- and middle-income countries is noted as significant, although it comes with higher costs and pressure on debt service.