ADB provides $250 million loan to strengthen Bangladesh's social safety net

The Asian Development Bank (ADB) has approved a $250 million loan to help Bangladesh implement necessary reforms to enhance the efficiency, coverage, and effectiveness of its social protection system.

The loan was approved on Friday, April 24, under the Second Strengthening Social Resilience Programme, Sub-programme 2. The programme aims to strengthen protective and preventive social protection activities to reduce risks, exclusion, and vulnerability to poverty.

The programme focuses on improving social protection system management, expanding its coverage and scope, and strengthening protective measures for vulnerable populations.

ADB Country Director for Bangladesh Ho Yun Jeong said the programme marks a significant milestone in Bangladesh's transition toward a more modern, inclusive, and resilient social protection system.

Reforms under the programme include the development of contributory social protection schemes, which are expected to reduce the government's financial burden in the long term. Additionally, at least 250,000 more disadvantaged women will be included under the widow allowance programme. A core workfare programme will also be strengthened through climate adaptation measures.

Under a targeted Bangladesh Bank refinancing scheme, access to financial services for women entrepreneurs will increase by at least 15 per cent. These initiatives are expected to bring about significant results at the micro-level, including increased productivity and efficiency, higher female labour force participation, and greater poverty reduction.