Government borrowing through treasury bills bonds and other securities surged in fiscal year 2024–25 as weak revenue collection forced authorities to finance a widening budget deficit.
As a result the outstanding stock of government securities rose 28 per cent year on year to Tk 7.45 lakh crore by the end of June 2025 according to Bangladesh Bank report.
Of the amount, outstanding debt from treasury bonds was Tk 518,995 crore, which increased 27 percent year-on-year. At the same time, outstanding debt through treasury bills grew 31 percent to Tk 175,131 crore.
Including other securities, such as Shariah-based sukuk bonds, the total outstanding amount of government debt rose to Tk 768,850 crore – 12.92 percent of Bangladesh’s gross domestic product (GDP) – at the end of June 2025.
The report said the increase in debt from the banking sector was significant, driven by policy measures to reduce non-tradable securities such as savings certificates, as well as higher financing needs related to budget implementation.
The banking sector was the leading investor, accounting for 68.87 percent of total outstanding securities, followed by 12.03 percent held by long-term investors such as insurance companies, trust funds and provident funds, the report show.
Individual investors held 1.14 percent of the total outstanding amount.
In FY25, the average yields of treasury bills and treasury bonds increased during the first half, followed by a marginal moderation during the second half of the fiscal year.
During FY25, the net issuance of treasury bonds was Tk110,762 crore, which was 165.30 percent higher than that of the previous fiscal year. The net issuance of treasury bills grew more than four times during the period.
