Bangladesh Seeks US Support as Govt Moves to Cut Loan Dependence

Bangladesh has urged the United States to step up financial support in line with expanding bilateral trade ties, as the government moves to reduce dependence on borrowing and attract more foreign direct investment (FDI) and joint investment to drive economic growth.

Finance Minister Amir Khosru Mahmud Chowdhury said Dhaka had pressed Washington for greater assistance, arguing that Bangladesh's growing purchases of American goods, including aircraft, oil, wheat and soybeans, and its efforts to narrow the balance-of-payments gap should translate into stronger US support.

“If support does not come now, when will it?” the minister said, describing the argument Bangladesh had put to the US Treasury during talks on the sidelines of the ongoing annual meetings of the International Monetary Fund (IMF) and World Bank Group in Bangkok on Wednesday.

The discussions covered the broader Bangladesh-US relationship, including American assistance with debt management, as Dhaka seeks to strengthen economic ties while pursuing a policy shift away from excessive reliance on loans.

“Bangladesh did not receive much from the United States in the past. But, as Bangladesh-US relations have progressed, we are purchasing several aircraft and importing oil, soybeans and various other products and commodities from the US. Therefore, we should receive additional support from them,” Amir Khosru told reporters.

He said the US side had agreed with Bangladesh's position, although the outcome of the request for additional support remained to be seen.

“Given a relationship in which Bangladesh imports so much, and is reducing the balance-of-payments gap as they have asked, this support should come. They agreed, so let us see what happens,” he said.

The minister also met representatives of a US agency responsible for providing grants, arguing that Bangladesh had not received sufficient support through such channels in the past.

The push for greater US assistance comes as Bangladesh seeks to balance its external financing needs with a broader strategy of attracting investment, strengthening productive capacity and easing pressure on public borrowing.

The government is prioritising foreign direct investment and joint ventures as alternatives to excessive loan dependence, with the aim of bringing in capital, technology and expertise to support economic expansion.

Bangladesh's trade engagement with Washington has gained added significance following US President Donald Trump's tariff measures last year. Faced with a 35 per cent US tariff, Dhaka moved to increase imports of American products as part of its efforts to manage trade pressure and strengthen economic relations.

The two countries signed an Agreement on Reciprocal Trade on February 9, shortly before the interim administration's term ended. The BNP government subsequently backed moving the agreement forward and signed a deal to purchase 25 Boeing aircraft from the United States.

The aircraft purchase and increased imports of American commodities have become important elements of Dhaka's argument that closer commercial ties should be accompanied by greater US financial cooperation.
However, the minister's remarks did not specify the amount, form or timeline of the additional support sought from Washington.

For Bangladesh, the challenge is to turn expanding trade and diplomatic engagement into tangible financial assistance and fresh investment without deepening its dependence on external borrowing. The outcome of the discussions could help shape the country's approach to managing external financing pressures while pursuing a more investment-led growth strategy.