World Bank Pledges $2.3 Billion to Support Critical Reforms in Bangladesh

The funding will also be directed toward building a clean energy sector, improving air quality, and enhancing health outcomes across the nation.

World Bank Vice President for South Asia, Martin Raiser, concluded his visit to Bangladesh today, reaffirming the institution's commitment to supporting the country through vital reforms and development projects aimed at achieving inclusive and sustainable growth. During his visit, Raiser met with the Chief Adviser of the Interim Government, Professor Muhammad Yunus, to discuss a comprehensive World Bank program valued at approximately $2.3 billion for the current fiscal year.

The financing will play a crucial role in strengthening Bangladesh's economic resilience, particularly in the wake of the recent floods, and will help the country implement long-overdue public and financial sector reforms. The funding will also be directed toward building a clean energy sector, improving air quality, and enhancing health outcomes across the nation.

"Bangladesh has the opportunity to implement critical reforms that have been long unaddressed," said Raiser. "Through existing and new investments, we are focusing on improving economic governance and creating more and better jobs for the 2 million Bangladeshi youth entering the workforce every year."

Raiser expressed deep condolences for the tragic loss of lives during the recent floods in July and August and acknowledged the severe impact on affected communities. The World Bank is working closely with Bangladesh's health ministry to provide urgent support for critically injured students and affected individuals. In addition, the institution plans to offer rehabilitation assistance and livelihood restoration for those displaced by the floods in the country's eastern districts.

The World Bank also commended Bangladesh’s humanitarian decision to continue offering refuge to nearly a million displaced Rohingyas fleeing violence in Myanmar. In support of this effort, the institution has recently approved a $700 million program aimed at benefiting both the Rohingya refugees and the host communities that are sheltering them.

In further meetings with Bangladesh’s Finance Adviser, Energy Adviser, and Bangladesh Bank Governor, Raiser discussed key reforms intended to build Bangladesh’s economic resilience, ensure the stability of its financial sector, and improve governance, transparency, and accountability. He emphasized that substantial resources from the World Bank’s existing project portfolio could be repurposed to address the government's most pressing needs and help set the country on a more sustainable growth path.

As Bangladesh continues to grapple with recovery challenges from recent natural disasters, these discussions and financial commitments underscore the World Bank's enduring partnership with the nation, reinforcing a shared goal of fostering long-term resilience and inclusive development.