Both release of agreed funds and commitment for new funds from the development partners against development projects have increased in the first 11 months of FY21 despite the corona pandemic.
Foreign fund release gained 9.52 percent US$498.7 million year-on-year to $5,736 million including loans and grants during July-May period this fiscal, suggest latest data released by Economic Relations Division (ERD).During the same period in 2019-20 fiscal year, total fund disbursement by the development partners stood at $5,237.3 million.
ERD’s enhanced monitoring to get more fund released against mega projects and series of meeting with project directors and other line ministries helped increase the fund release amid the ongoing corona crisis, according to ERD officials.
Meanwhile, new fund commitments soared to $5362.7 million in the said period, $104.7 million up from $4,357.9 million fund commitments development partners made for the period in FY20, according to ERD data.
ERD was still far away from achieving its $7.41 billion total foreign fund disbursement target set for the whole fiscal year. In 11 months, total fund release was $1.68 billion less than the target. ERD officials, however, expects that fund release situation may improve further when actual fund disbursement figures will be available after at least two months after the end of the fiscal year.
Although the fund release target is not likely to be met fully in FY21, ERD officials are optimistic the fund release figures as the fiscal year has gone through a pandemic situation.
Besides the fund inflow, the government has managed to repay $1,715.6 million for its outstanding loans, including $1,263.4 million as principal amount and $452.1 million as interest of loans, suggest latest ERD data.