Bangladesh economy under pressure but stable, claims finance minister

25 Feb '24

1 min read

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Insights

Abul Hassan Mahmood Ali acknowledged economic pressure, especially in debt interest payments.
Global effects and Ukraine-Russia tensions mildly impacted domestic economy, he said.
In FY23, Bangladesh paid $2.67 billion in interest and principal on loans to development partners, up from $2.01 billion in the previous fiscal year, as per ERD data.

Bangladesh finance minister Abul Hassan Mahmood Ali addressing reporters recently, acknowledged pressure on the economy, particularly in interest payments for debt even as he reassured the situation is not severe while adding global effects and the Ukraine-Russia conflict have mildly stressed the domestic economy.

The finance minister highlighted the government’s efforts to overcome these challenges.

Following a meeting with Abdusattor Esoev, chief of mission of the International Organisation for Migration (IOM) in Bangladesh, at the Economic Relations Division (ERD) in the capital, the finance minister highlighted IOM’s role in facilitating overseas migration and pledged continued support.

Regarding inflation concerns, the finance minister urged patience, noting fluctuations in prices and the complexities of addressing them forcibly.

He remained optimistic, reassuring that things would stabilise in due course.

According to Economic Relations Division (ERD) data, Bangladesh’s interest and principal payments on loans to various development partners totalled $ 2.67 billion in the fiscal 2022-23 (FY23), compared to $ 2.01 billion in the previous fiscal year.

This data underscored the financial obligations faced by the country and the need for strategic management amid economic pressures.

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