Finance Adviser Dr Salehuddin Ahmed said on Tuesday that Bangladesh has already surpassed the external borrowing limit set by the International Monetary Fund (IMF), though he described development partners’ concerns as reasonable and aimed at ensuring sound fiscal management.

Speaking to reporters after a meeting of the Advisers Council Committee on Government Purchase at the Secretariat, Dr Salehuddin said, “We have already exceeded the ceiling—around $4 billion additional funds have been used. But overall, we have shown progress.”

He explained that the IMF-imposed borrowing cap was designed to help maintain the country’s debt sustainability and repayment capacity.

“The rationale behind the ceiling is that our development partners want to make sure we don’t become overambitious and undertake projects beyond our repayment ability,” he said. “If borrowing grows too rapidly, there’s a risk of inefficiency and waste. So, their concern is quite genuine.”

According to the IMF’s Bangladesh Country Report, the global lender has for the first time set a maximum ceiling of US$8.44 billion for foreign borrowing in the fiscal year 2025–26. The new benchmark, revealed after the release of the fourth and fifth tranches of Bangladesh’s $4.7 billion loan programme, will serve as a key condition for future disbursements.

The report outlines quarterly limits to ensure tighter monitoring of debt levels—$1.91 billion in the first quarter, $3.34 billion by midyear, $4.34 billion after nine months, and the full ceiling of $8.44 billion by the end of the fiscal year.

This external borrowing cap was not part of the IMF’s original programme approved in 2023 but was introduced to reinforce fiscal discipline amid growing concerns over debt sustainability.