Bangladesh is experiencing increasing economic pressure as the majority of new foreign loans are being used to service existing debt. Funds intended for development projects are dwindling, with nearly all new financing directed towards paying off principal and interest. Simultaneously, both new loan commitments and disbursements from development partners are decreasing. This situation raises concerns about the country’s reliance on foreign aid for development initiatives. The trend indicates a shrinking capacity for new investments in crucial sectors due to escalating debt obligations. Experts suggest this cycle could hinder future economic growth and sustainable development if not addressed strategically. The nation’s foreign exchange reserves are increasingly impacted by this repayment burden.