Dr. Yunus Faces Lack of Response from Development Partners Despite Billion-Dollar Aid Pledge

Economic Desk

Despite pledges to address the country’s economic crisis through foreign aid under the leadership of Interim Government Chief Advisor Dr. Yunus, no significant progress has been made. The government, which took office at the beginning of the 2024-25 fiscal year, sought an additional \$5 billion in loan assistance from development partners. However, eight months later, there has been little response, leading to disappointment among supporters.

Dr. Yunus personally appealed for this aid during national addresses and foreign visits. However, reports indicate that commitments for foreign loans have decreased by 58% compared to last year. Development partners have hesitated to provide assistance due to a lack of new projects, political and economic instability, and reduced disbursement rates. Additionally, project implementation rates have hit a decade-low.

Economists argue that without political stability, effective negotiations, and proper project planning, increasing foreign aid will remain challenging. Although the upcoming budget may rely more on foreign loans, overcoming the crisis will be difficult without improved implementation capacity and policy advancements.

Analysts further note that financial institutions, which once readily lent to Bangladesh during Sheikh Hasina’s tenure due to robust development plans and revenue capabilities, are now reluctant. Even after three meetings, the government has failed to secure the release of the 4th and 5th installments from the IMF over five months, while the 1st to 3rd installments were disbursed on time.

Bangladesh’s downgraded status in Moody’s Index for the second consecutive time has raised concerns about the country’s economic stability among financial institutions. Risk management expert Rahat Khan observed that institutions are unwilling to take financial risks under current circumstances.

Criticism of Dr. Yunus’s inability to deliver on his promises is mounting. Many believe there is a significant gap between his pledges and the realities on the ground. Despite the government’s efforts, the failure to secure the expected funds has further complicated the challenge of restoring economic stability.