Bangladesh's Per Capita Debt Rises Sharply to $483

As 2024 drew to a close, Bangladesh quietly crossed a significant economic threshold: every citizen now bears the weight of $483 in external public debt. This stark figure, released in the latest update from Bangladesh Bank, reflects a dramatic rise in the nation’s outstanding foreign debt—which surged to $103.64 billion by December 2024. Of this, government liabilities alone account for $84.21 billion.

Compared to fiscal year 2015–16, when the per capita debt stood at $257, the burden has nearly doubled. With the country’s population nearing 174 million, the arithmetic is simple but sobering.

This ballooning debt has taken shape against the backdrop of a decade marked by robust economic growth. According to preliminary estimates from the Bangladesh Bureau of Statistics, per capita income climbed to $2,738 in FY2023–24. But while incomes have risen, so too have liabilities, raising difficult questions about the equity and sustainability of the country’s development model.

In local currency terms, each citizen now carries around Tk 58,612 in external debt. To put that into perspective, the proposed per capita allocation under the Annual Development Programme (ADP) for FY2025–26 stands at just Tk 13,202. This means that for every taka earmarked for development, over Tk 4 is already owed in foreign loans.

A large share of this borrowing has been channeled into mega-infrastructure projects—metro rail systems, highways, power plants, and landmark bridges—intended to enhance long-term economic efficiency and connectivity. Many of these loans were contracted on concessional terms, featuring low interest rates and extended repayment periods.

Yet the financial headwinds are gathering. A depreciating taka, rising global interest rates, and a volatile international economy are all pushing up the cost of debt servicing. These mounting costs threaten to shrink the government’s fiscal space, potentially limiting its ability to invest in essential services and undermining macroeconomic stability.

Bangladesh now stands at a critical juncture. The pressing question is no longer just how much the country borrows—but how effectively it invests what it borrows. Unless the returns are broad-based and inclusive, the rising tide of debt risks submerging the very development it aims to support.

Because while $483 may appear to be just a statistic, its implications for everyday life, public spending, and national priorities are anything but abstract.