JAKARTA - The Asian Development Bank or ADB is preparing funding of 5 billion US dollars for Bangladesh in the next five years. The value is around Rp88.5 trillion with an assumption of a rate of Rp17,700 per US dollar.
Quoted from Anadolu Agency, Tuesday, May 26 which launched the ADB statement, the fund was prepared to expand investment, create jobs, improve connectivity, and encourage more equitable regional growth.
The announcement was made when ADB President Masato Kanda met with Bangladesh Prime Minister Tarique Rahman in Dhaka on Monday.
ADB stated that the funds would be included in the Integrated Growth Network Development Initiative, an economic growth network development program that focuses on investment, regional connectivity, and job creation.
"ADB intends to provide 5 billion US dollars over five years for the Integrated Growth Network Development Initiative," said the ADB statement.
The package is estimated to be worth around 1 billion US dollars per year. The funds will be included in ADB's annual commitment to Bangladesh, which is a financing plan prepared by ADB each year for partner countries.
ADB also plans to increase its annual commitment to Bangladesh by 20 percent in the medium term. The value rises from around 2 billion US dollars to around 2.4 billion US dollars.
"Bangladesh is entering a critical new phase," ADB President Masato Kanda said.
According to Masato Kanda, ADB will help Bangladesh maintain stability, open new sources of growth, and build a more diverse and resilient economy.
During the visit, ADB also signed a loan of around 1.4 billion US dollars as part of the 2026 annual commitment program.
ADB said an additional support of 250 million US dollars was provided to help cover the financing gap due to the economic impact of the Middle East conflict.
The conflict, according to the ADB, adds pressure to Bangladesh's economy as it pushes up the cost of fuel, liquefied natural gas or LNG, fertilizer, and freight.
The pressure comes at a time when Bangladesh's inflation is still high and its banking sector is not immune to pressure.
ADB has also prepared technical assistance of 2 million US dollars. This fund is used to support the preparation and implementation of Bangladesh's medium-term development framework, as well as aligning ADB's partnership strategy with government priorities.
It was reported by Anadolu, Masato Kanda also met with Finance and Planning Minister Amir Khosru Mahmud Chowdhury and a number of private sector leaders. They discussed the agenda of reform, macroeconomic pressures, and Bangladesh's external financing needs.
"This large funding shows that Bangladesh still needs fiscal space and external support to maintain the growth rate, especially when global energy and logistics costs are still high," he said.
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