Foreign aid commitments rebound sharply in Jul-Aug FY26, rising over 1,100pc

The sharp rise signals a revival of development cooperation under the interim government, which has prioritised fast-tracking stalled projects, improving fiscal transparency, and rebuilding trust with development partners

Foreign aid commitments to Bangladesh have recorded a dramatic rebound in the first two months of the current fiscal year (FY2025-26), underscoring renewed donor confidence in the country’s economic direction and project execution capacity.

According to provisional figures from the Economic Relations Division (ERD), foreign aid commitments surged to $243.81 million in July-August FY26, marking an astounding 1,109% increase from just $20.16 million during the same period last fiscal year.

Officials and economists said the sharp rise signals a revival of development cooperation under the interim government, which has prioritised fast-tracking stalled projects, improving fiscal transparency, and rebuilding trust with development partners.