ADB to provide Bangladesh with $5 billion aid over next 5 years

The Asian Development Bank (ADB) has announced a $5 billion financing package for Bangladesh over the next five years. The announcement was made by the organization's President Masato Kanda during a meeting with Prime Minister Tarique Rahman.

This information was given in a press release by ADB after a meeting held at the Prime Minister's Office in Tejgaon on Monday (May 25).

According to the current exchange rate, the amount of $5 billion is approximately Tk 61,375 crore.

The release said that this financing will be provided as part of Bangladesh's development activities from 2027 to 2031. ADB plans to implement this assistance under the 'Integrated Growth Network Development Initiative'.

Masato Kanda said, "Bangladesh is entering an important new phase. ADB will help the country maintain stability, create new sources of growth, and build a more resilient economy."

During his two-day visit to Dhaka, the government also signed loan agreements worth about $1.4 billion for four projects. The agreements were signed between the Economic Relations Division (ERD) and ADB at a hotel in the capital on Sunday.

The ADB said that an additional $250 million in assistance has also been extended to help Bangladesh cope with the conflict in West Asia and global economic pressures. This assistance will play an important role in addressing the pressure on the Bangladeshi economy due to the increase in fuel oil, LNG, fertilizer and transport costs.

The organization also said that it plans to increase its annual sovereign commitment to Bangladesh from $2 billion to about $2.4 billion in the medium term.

In addition, the ADB announced that it will provide $2 million in technical assistance to Bangladesh to help implement the country's medium-term development framework.

During the visit, Masato Kanda also met with Finance Minister Amir Khosru Mahmud Chowdhury. There, they discussed issues such as Bangladesh's economic reforms, foreign financing and increasing private investment.