Donors commit lesser volume of aid in 8 months

FHM Humayan Kabir | Published: March 26, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Donors committed lesser volume of aid during the July-February period of the current fiscal compared to that of the corresponding period of the last fiscal (2012-13).
The donors confirmed $2.84 billion during the July-February period of this fiscal. The amount was 25 per cent less than what had been committed during the corresponding period last fiscal, officials said Tuesday.
Economic Relations Division (ERD) data shows that the development partners confirmed US$936 million less aid in the first eight months of the current financial year (FY) 2013-14. During the same period last fiscal, they had confirmed assistance worth $3.78 billion.
A senior ERD official said political turmoil and a few other January 05 election-related issues were responsible for the lesser aid commitment on the part of the donors. Since many development partners like the USA, the European countries and Japan were against the holding of the last January 5 national polls without the participation of the main opposition and other political parties, they are still thinking about their cooperation with the government, he added.
However, aid disbursement against different development projects picked up in July-February period of the current FY2013-14.
According to ERD statistics, out of the total $1.83 billion foreign aid disbursed during last July-January period, the development partners working in Bangladesh disbursed $1.51 billion as loans and $317.79 million as grants.
In the same period of the last FY 2012-13, the donors provided $1.25 billion in loans and $430.26 million in grants out of the total $1.68 billion.
A senior ERD official said the total commitment had increased after January this fiscal as the World Bank made a $600 million loan commitment on February 3 for improving rural electrification.
Meanwhile, the government has repaid $787.87 million as principal and interest to both bilateral and multilateral lenders during the July-February period this fiscal.
In the corresponding period of the FY2013, the government made $803.10 million payment to the lenders, ERD data showed.
Among the major donors, the World Bank in the first eight months had disbursed $668 million, the Asian Development Bank $347 million, Japan $224 million, and China $230 million.
The government in the FY2013 had received $2.78 billion in assistance from all multilateral and bilateral donors. The ERD official said the lower aid inflow would not only affect development work, it would also impede higher economic growth of the country.
Meanwhile, the government in January had revised its foreign aid target downward to $2.95 billion from the original one of US$3.30 billion for the current budget.