Business & Economy
Government approves $3.3bn hard-term loans for power and fuel
Bangladesh approved $3.3 billion in non-concessional borrowing, including $3.1 billion for fuel oil and LNG imports and $200 million for power-distribution upgrades. The package reflects urgent energy-financing needs.
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From 8 October 2026 — Daily Brief
Bangladesh has approved $3.3 billion in non-concessional foreign borrowing to finance fuel imports and upgrade electricity-distribution infrastructure.
The Standing Committee on Non-Concessional Loans approved the proposals at a meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury on 7 October.
About $3.1 billion is intended for short-term financing of fuel oil and liquefied natural gas imports, while $200 million will support improvements to the power-distribution network. The energy financing is expected to involve the International Islamic Trade Finance Corporation, while the power component is linked to the Asian Development Bank.
Non-concessional loans carry harder repayment terms than the low-interest development financing Bangladesh has traditionally relied on. Their use therefore increases the importance of debt servicing costs, project returns and foreign-currency management.
Officials described the financing as necessary to maintain energy supplies and support essential infrastructure. The decision illustrates the fiscal trade-off facing Bangladesh: securing enough imported energy to keep the economy operating while trying to contain borrowing costs and external financing risks.