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The Asian Development Bank (ADB) has overtaken the World Bank to become Bangladesh’s top development partner, disbursing $2.52 billion in loans and grants in fiscal year 2024-25, according to the Economic Relations Division (ERD).

This marks the first time since independence that the Manila-based lender has outpaced the World Bank in annual aid releases. The World Bank, traditionally Bangladesh’s largest development partner, provided $2.01 billion, while Japan followed with $1.58 billion.

Overall Aid Decline

Despite ADB’s strong performance, Bangladesh’s total foreign aid disbursement fell 16.6 percent to $8.57 billion in FY25 from $10.28 billion a year earlier. Officials blamed the decline on slower project execution and a tightening global aid flow.

An ERD official noted that ADB’s growing role is especially important as Bangladesh faces “acute foreign-exchange inadequacies.” The bank’s financing supported major infrastructure and development projects, including MRT Line-05, the Elenga-Hatikamrul-Rangpur highway, and the Dohazari-Ramu-Cox’s Bazar railway line.

Other Donors

Beyond the top three partners, Russia disbursed $670 million, the Asian Infrastructure Investment Bank (AIIB) $530 million, and China $410 million.

In FY24, the World Bank had narrowly led with $2.15 billion against ADB’s $2.13 billion. Historically, since 1972, the World Bank remains the largest cumulative donor, providing $32.79 billion, compared with ADB’s $27.09 billion.

Debt Pressure Rising

While foreign aid remains a vital resource, Bangladesh’s debt-servicing burden is mounting. In FY25, the government repaid $4.09 billion in foreign loans, up 21 percent from the previous year. Rising repayments, coupled with a slowdown in development spending, have pushed the Annual Development Programme (ADP) implementation rate to a two-decade low, analysts warned.

Aid Commitments

In terms of commitments rather than disbursements, the World Bank still led in FY25, signing new aid deals worth $2.84 billion, compared with ADB’s $2.0 billion.

Despite this, ADB’s record disbursement highlights its growing importance to Bangladesh’s development trajectory, as the country navigates strained reserves, debt repayments, and slower aid inflows.