At least five major development partners, including Japan, China, India, Russia, and the Asian Infrastructure Investment Bank (AIIB), refrained from making any new aid commitments to Bangladesh in the first quarter of the current fiscal year, reportedly waiting for political stability following the recent unrest and ahead of national elections.

Data from the Economic Relations Division (ERD) show that during July–September of fiscal year 2025–26, these partners made no new pledges, while even the World Bank—the country’s largest development financier—confirmed only a nominal $12.44 million in assistance. Officials said this pause likely reflects donor caution as the country transitions toward an elected government.

“We do not know the exact reason for their silence. Since the government has already announced an election roadmap, the partners appear to be waiting for the next elected administration,” said a senior ERD official.

Among bilateral partners, Japan, Bangladesh’s top donor, made no new pledges but disbursed $40.67 million from previously approved funds. China neither committed nor disbursed any amount during the quarter, extending its two-year pause on new loan deals.

India and Russia also made no fresh pledges, though they released $62.83 million and $315.39 million, respectively, from earlier commitments. AIIB made no new commitments and disbursed only $0.40 million.

The Asian Development Bank (ADB) stood out as the only major lender with a significant new commitment of $481.71 million—over half of the total $910.67 million pledged during the quarter.

Despite the modest new commitments, the figure still marks a recovery compared to just $27 million in the same period last fiscal year.

Disbursements during the quarter reached $1.15 billion, lower than the government’s debt-service payments of $1.27 billion, reflecting a net negative flow of foreign aid.

Officials noted that China has not made any new aid pledges for two years—from July 2023 to June 2025—despite repeated requests for funding of priority infrastructure projects.

The absence of commitments from China, India, and Russia over the past two fiscal years has significantly impacted Bangladesh’s aid pipeline, resulting in a reduction in total annual aid commitments to $8.32 billion in FY2025, a decrease of $2.4 billion from the previous year.

Foreign aid disbursement also fell in FY2025 to $8.57 billion, $1.7 billion lower than in FY2024, underscoring growing challenges in Bangladesh’s external development financing amid global and domestic uncertainties.