DHAKA: Commitments of loans and grants made by international lenders and development partners declined by 37.6 per cent in the first five months of the current fiscal year compared with that of corresponding period of the last year.

From July to November of 2014-2015 FY, development partners promised to provide a total of $89.66 crore grants and low-interest loans which was $143.73 crore in the corresponding period of previous fiscal.

The country’s economy witnesses a decrease of $53.75 crore in current FY.

In 2014-2015 FY, $69.70 crore was provided as loan and $19.66 crore as grants while $126.25 crore was given as loan and $17.49 crore as donation in previous 2013-2014 FY.

Sources of Economic Relations Division (ERD) of Ministry of Finance confirmed the matter to banglanews on Wednesday.

ERD sources said the partners, meanwhile, disbursed $90.20 crore from July to November of current fiscal, which was $ 88.73 crore in the corresponding period of the previous FY – only $1.47 crore more disbursement this year.

In 2013-2014 FY, the partners disbursed $74.82 crore as loan and $15.38 crore as grants, the sources added.

One of the main reasons to decease the foreign pledges is lack of negotiation skill and large amount of foreign money remain stuck in pipeline, Dr. Monzur Hossain, a Senior Research Fellow of Bangladesh Institute of Development Studies (BIDS), told banglanews.

Monzur added “We are not making development partners understand properly the reasons of decreasing pledges”.

To increase foreign money disbursement and pledge, the economist suggested for increasing annual development program (ADP) implementation and reducing sloth-speed in project implementation.

For these reasons, foreign consultants need to be appointed, Monzur added.

BDST: 1221 HRS, DEC 25, 2014