Dhaka, July 30 -- The Economic Relations Division (ERD) of the Ministry of Finance has issued a new circular requiring ministries and divisions to fulfill seven conditions before signing any loan agreement for foreign-funded development projects, in a move aimed at ensuring timely progress and effective cost control.

The ERD's Foreign Aid Budget and Accounts wing issued the circular on Tuesday, with wing Chief Syed Ashrafuzzaman signing it.

According to the circular, these mandatory conditions must be followed from the initial preparation phase to safeguard the time value of money and improve project execution.

Experts say the move will make foreign fund utilization more effective and help avoid cost overruns and delays. They consider ...