Foreign aid supply flow falls because of ‘go slow’ policy of several Asian stakeholders. Funding disbursement from development partners have significantly decreased during a crucial moment, when Bangladesh needs dollars to increase its forex reserves.
Officials informed that they see a slow pace in disbursement of funds from China, India and Asian Infrastructure Investment Bank (AIIB) during the interim government regime.
They said: “None of them have promised of a single penny and one of them has released a small amount of funds in the first quarter of current fiscal year.”
“In the meantime, the slow pace in funds disbursement affected at least one dozen of ongoing development projects,” informed finance ministry and projects implementers.
Sources said along with multilateral development partners, Japan, the largest bilateral donor, has maintained relations with the interim government of Bangladesh led by Dr Muhammad Yunus.
A senior officer from finance ministry said: “While major bilateral donors China, India, and the Chinese-led AIIB were monitoring the situation, major multilateral donors were maintaining normal Economic Relations Department (ERD) communication with the government.”
He said: “Though China in the meantime has started communicating with ERD, the India’s intention is not clear yet.”
According to ERD, “Neither China and India did promise aid in the first four months of the interim government since the fall of Awami League led government, nor the AIIB.”
Thought India has disbursed a little amount of money during the period, the second-largest bilateral development partner in East Asia did not disburse a single penny between July and October of this fiscal year.
According to ERD figures, it disbursed $63.8 million in loans between July and October, while the AIIB disbursed just $6.6 million. China did not open any disbursement accounts during this period.
When asked, ERD senior official said: “They have set a target of releasing $2.24 billion in medium to long-term foreign loans and grants from China, India and the AIIB. Meanwhile, the ERD has set a target of receiving $10.82 billion in loans and grants in the current fiscal year.
But the Asian donors didn’t ensure any disbursement during the period, the official continued.
He said expressed their hope of a huge move from those development partners including India, China, and the AIIB.
Another unnamed official from ERD said: “Multilateral lenders [the World Bank, the Asian Development Bank (ADB), and the largest bilateral donor, Japan] have come forward with major assistance to the Bangladesh government in the last four to five months.”
“The World Bank has already disbursed $178.1 million in loans and assistance, ADB $266.1 million, Japan $266.3 million, and Russia $194.5 million.”
“Meanwhile, all foreign development partners and lenders of Bangladesh have waived off $1.2 billion in medium to long-term foreign loans and grants during July-October,” he continued.
“Railways, Road Transport and Bridges and Shipping ministries have reported receiving some of the funds allocated under their Annual Development Plan,” ERD officials said, adding: “Already, communication has been strengthened with India, China and AIIB so that they come forward with maximum support for Bangladesh. We are also getting the results of that recently.”
Translated by Afsar Munna
