Distinguished Professor Ali Riaz has published a commentary on Bangladesh’s request for a soft loan from China and its economic and political implications in the magazine Diplomat. Bangladesh has requested $5 billion in soft loans from China. While China provides project loans to Bangladesh, Bangladesh never requested soft loans, especially of such a large amount. The loan request was made to cover the country’s dwindling foreign reserve as Bangladesh is facing an economic crisis. The IMF has allocated a loan of $4.7 billion to Bangladesh in January 2023 to be disbursed in several installments. In early May, the IMF allocated the third installment of IMF. Riaz argues that the government is borrowing extensive amounts of money to address the ongoing economic crisis, especially the debt obligations. Riaz noted that this request indicates the growing influence of China in South Asia, particularly in Bangladesh. He writes that borrowing from China has had adverse impacts on governance in various countries including increased corruption, lack of transparency, and political use of external funds. Riaz writes, if Bangladesh receives the loan, it is unlikely that there will be any public discussions as no forum in Bangladesh requires the government to explain.
Riaz publishes on Bangladesh’s loan request to China
