Switzerland Halts Development Aid to Bangladesh Despite Yunus’ Promises

News Desk

Dr. Muhammad Yunus recently concluded a four-day official visit to Switzerland, bringing promises of development support. However, Switzerland has decided to halt its prior financial aid to Bangladesh.

The Swiss government announced the closure of its development assistance programs in Bangladesh, Albania, and Zambia due to budget cuts. This decision followed a reduction in Switzerland’s foreign aid budget by the Swiss Parliament in December.

After the visit, from January 20 to 24, Yunus’ press secretary Shafiqul Alam held a press conference, stating that discussions during the trip focused on investment in Bangladesh and strengthening bilateral relations. He added that foreign investors were briefed on Bangladesh’s investment environment.

According to Swissinfo, the Swiss Parliament reduced the international cooperation budget by 110 million Swiss francs ($121 million) for 2025 and cut 321 million francs from the financial plan for 2026-2028.

A Swiss government statement indicated that these cuts would impact bilateral, economic, and thematic cooperation, along with multilateral organizations.

On Wednesday, Switzerland’s Federal Council was informed about the budget reductions. Consequently, the Swiss Agency for Development and Cooperation (SDC) will phase out its bilateral development programs in Bangladesh, Albania, and Zambia by the end of 2028.

Additional budget reductions are planned for domestic and thematic programs and organizations between 2025 and 2028. However, allocations for humanitarian aid, peacebuilding, and assistance to Ukraine will remain unchanged.