Foreign aid disbursement declined 5.80 % year-on-year in the eight months to February this fiscal year.
The amount of decline is Tk11.96 crore during the period, which has negative impacts on the balance of payments and is not keeping the government borrowing at tolerable levels.
Foreign aid in the pipeline is significantly low as well. At the end of February last year the amount was $1.95bn.
In the July-February period of the fiscal last year 2015-16, disbursement stood at $2.07bn, according to the Economic Relations Division (ERD).
Of $1.95bn the disbursement of loan amount is Tk172.78 crore while the grant amount is Tk22.42 crore.
“It is now normal matter. Foreign aid disbursement will definitely increase as the Russian authorities are going to disburse a handsome amount of fund for construction of Bangladesh’s first nuclear power plant,” said an ERD official.
Bangladesh received 17% less foreign aid in the first half of the current fiscal year for belt-tightening by some donors, especially for a pause made by Japan.