United News of Bangladesh

Amid mounting global economic uncertainties, South Asia's growth outlook is showing signs of strain, with Bangladesh no exception, according to the latest assessment by the World Bank. The multilateral lender has warned that the region’s economic momentum is losing steam due to a confluence of external shocks, tightening financial conditions, and domestic vulnerabilities, casting a shadow over near-term development prospects. Bessent criticises IMF, World Bank; sees ‘big deal’ opportunity with China A significant decrease in export growth and low investment have contributed to economic slowdown in Bangladesh in FY24, but growth is expected to rebound in the medium term, says the World Bank in its twice-yearly update, released on Thursday. The latest Bangladesh Development Update highlights the recent economic developments and outlook for the medium term, with a special focus on financial sector stability. After a fall in real GDP growth to 4.2 percent in FY24 from 5.8 percent in FY23, economic activity slowed further in FY25. The economy continues to face significant challenges, including investment moderation, elevated inflation and vulnerabilities within the financial sector. Meanwhile, external sector pressures have apparently eased, with robust growth in remittance inflows and exports bolstering the current account balance in FY25. Reforms in key sectors could create millions of jobs in Bangladesh: World Bank Real GDP growth is projected to further moderate to 3.3 percent in FY25 due to declining private and public investment. Political uncertainty and rising costs associated with borrowing and inputs are expected to constrain private investment growth and keep industrial growth subdued. Public investment will decline as the government reduces capital expenditure in FY25. The fiscal deficit is expected to remain under 5 percent of GDP in the medium term, with capital expenditure increasing only gradually. Inflation is likely to remain elevated in the near term. World Bank’s Vice President for South Asia Martin Raiser said multiple shocks over the past decade have left South Asian countries with limited buffers to withstand an increasingly challenging global environment. “The region needs targeted reforms to strengthen economic resilience and unlock faster growth and job creation. Now is the time to open to trade, modernize agricultural sectors, and boost private sector dynamism.” World Bank Interim Country Director for Bangladesh Gayle Martin mentioned that the country will need bold and urgent reforms to bolster the financial sector, facilitate trade and enhance domestic revenue mobilization. Real GDP is expected to rise gradually in the medium term, if backed by critical reforms. Inflation is expected to gradually subside in the medium term on the back of tight monetary policy, fiscal consolidation and easing import restrictions on key food commodities. Rising trade uncertainties are expected to put pressure on the external sector. World Bank’s Senior Economist Dhruv Sharma, who is also the co-author of the report, said the risks to the outlook are on the downside as uncertainties related to trade, persistent inflationary pressure, weak demand in Bangladesh's major export markets and intensifying financial sector vulnerabilities could weigh on growth. The Bangladesh Development Update is a companion piece to the South Asia Development Update, a twice-a-year World Bank report that examines economic developments and prospects in the South Asia region and analyses policy challenges countries are facing. The April 2025 edition, Taxing Times, projects regional growth to slow to 5.8 percent in 2025—0.4 percentage points below October projections—before ticking up to 6.1 percent in 2026. This outlook is subject to heightened risks, including from a highly uncertain global landscape, combined with domestic vulnerabilities including constrained fiscal space. It includes a special chapter analysing the state of domestic resource mobilization in the region. Despite often higher tax rates, the region's tax revenues remain below the average for emerging markets and developing economies. The report outlines how countries can address inefficiencies in tax policy and administration to increase revenues so that they can enhance resilience amid an increasingly challenging global economic environment.  

Treasury Secretary Scott Bessent levelled harsh criticism at the operations of the World Bank and the International Monetary Fund on Wednesday even as he tried to reassure nervous investors that the United States would maintain its global leadership role. “America first does not mean America alone,” he said in a speech to the Institute of International Finance. "To the contrary, it is a call for deeper collaboration and mutual respect among trade partners.” Although Bessent said the IMF and the World Bank are “falling short,” he stopped short of calling for the US to withdraw from the institutions as some conservatives have advocated. It was the latest example of how Bessent, a former hedge fund manager who keeps a close eye on the financial markets, has tried to calm the economic turmoil as President Donald Trump tries to rewire international trade through aggressive tariffs. After Bessent's remarks, reporters asked him about a Wall Street Journal article that said the huge US tariffs that the Republican president has levied on China could be cut in half, citing unidentified people familiar with the matter. Bessent said: “I’d be surprised if that discussion is happening." However, he said he expects “there’d have to be a de-escalation” from Washington and Beijing’s trade confrontation. Trump had said on Tuesday that the 145% tariffs on China could “come down substantially." And then on Wednesday, he told reporters that “everybody wants to be a part of what we're doing" and “everyone's going to be happy.” Bessent's speech in Washington represented a broadside against the IMF and the World Bank, which provide loans and other financial support around the world. He said the Trump administration “will leverage US leadership and influence at these institutions and push them to accomplish their important mandates.” EVs in the spotlight as China claims a leading global role at Shanghai's auto show Some of Bessent's criticisms echoed the Trump administration's efforts to root out progressive ideology from federal institutions. Bessent said the IMF “has suffered from mission creep” and “devotes disproportionate time and resources to work on climate change, gender and social issues.” He said there were similar problems at the World Bank, which he said “should no longer expect blank checks for vapid, buzzword-centric marketing accompanied by half-hearted commitments to reform.” One of the problems, Bessent said, is that China is still treated like a developing country, which gives it more favorable treatment from global institutions. With China as the second-largest economy in the world, he said, “it's an adult economy.” Despite growing friction between Beijing and Washington, Bessent said “there is an opportunity for a big deal here.” Bessent wants the US to boost manufacturing while China increases consumption, making its economy less reliant on flooding the globe with cheap exports. “If they want to rebalance, let’s do it together,” he said. “This is an incredible opportunity.” Beijing said Wednesday that “exerting pressure is not the right way to deal with China and simply will not work.”

Bangladesh could attract significant investments and create millions of jobs by implementing essential reforms in four sectors, according to a World Bank Group report released  on Tuesday at the Bangladesh Investment Summit 2025. The new Bangladesh Country Private Sector Diagnostic (CPSD) report showed that with targeted policy actions, Bangladesh could create 2.37 million jobs annually in the construction industry by supporting the construction of new housing units, generate over 664,000 formal jobs by expanding domestic paint and dye production, and create between 96,000 to 460,000 new jobs through digital financial services reforms. The report identifies four sectors-green readymade garments (RMG), housing for middle-income families, paint and dyes, and digital financial services-where policy actions can help remove barriers to private investment. The report outlined specific, near-term steps the government can take to attract investment in these sectors, generate jobs, remain competitive after graduating from Least Developed Country (LDC) status, and strengthen the domestic economy. Illegal wealth: ACC sues ex-Industries Minister Nurul Majid and wife Some of the specific actions include: Upgrading production in the readymade garments sector to comply with EU requirements, focusing on greening. sustainability, and labor standards. Strengthening the regulatory framework for digital mapping and property registration to improve access to mortgages by ensuring properties are valued at market rates rather than outdated tax-assessed values. Digitising customs classifications on imported inputs for paint and dyes to expedite clearance, enabling businesses to more easily comply with custom regulations. Establishing protocols to enable mobile financial services for merchant wallets with higher transaction limits facilitating wholesale transactions and making digital payments more accessible for businesses. "The World Bank Group's findings offer valuable guidance for shaping policies and strategies that promote private sector led growth and establish the institutional foundations essential for sustainable economic progress in Bangladesh,” said Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, Bangladesh Investment Development Authority (BIDA). “The Interim government is dedicated to fostering growth by creating a more conducive business environment and supporting the expansion of emerging industries, ultimately leading to job creation,” he added. "With new and emerging challenges, Bangladesh needs urgent and transformative policy and institutional reforms to help firms expand domestically and compete globally and create millions of jobs for its youth entering the labor market every year," said Gayle Martin, World Bank Interim Country Director for Bangladesh. The World Bank Group stands ready to collaborate with the government and all stakeholders to help Bangladesh stay on strong and inclusive growth path, he said. "As part of the World Bank Group, IFC is committed to supporting Bangladesh to strengthen its private sector and drive economic growth," said Martin Holtmann, Country Manager IFC, Bangladesh, Bhutan, Nepal.  The Bangladesh CPSD launch was followed by a panel discussion on the report's findings by Lutfey Siddiqi, Bangladesh Government's Envoy for International Affairs, and Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, (BIDA), as well as private sector leaders, including Arun Mitra, Head of Operations, Nippon Paint, Kamal Quadir, CEO, bKash, Selim R.F. Hussain, Managing Director, BRAC Bank, Sharif Zahir, Managing Director, Ananta Group and Srabanti Datta, Managing Director, ABC Real Estate.

Managing Director of Operations at the World Bank Anna Bjerde on Thursday reiterated the global lender's support to the interim government for rebuilding Bangladesh. "I want to express our support… count on us for whatever support you want," she told Chief Adviser Prof Muhammad Yunus during a meeting on the sidelines of the World Economic Forum annual meeting in the Swiss city. Dr Yunus urges Meta to intensify efforts against misinformation, fake news The World Bank Managing Director for operations said the bank would like to extend its support to Bangladesh in the second half of the year, Chief Adviser's Deputy Press Secretary Abul Kalam Azad Majumder told UNB. During the talks, they spoke briefly on the July uprising, reform initiatives of the interim government and the state of Bangladesh economy. DP World, Maersk eye major investments in Bangladesh ports Lamiya Morshed, SDGs Affairs Principal Coordinator of the Bangladesh government, and Ambassador Tareq Md Ariful Islam, Bangladesh’s permanent  representative to Geneva, also attended the meeting.

World Bank Country Director for Bangladesh Abdoulaye Seck on Monday reaffirmed the institution’s commitment to supporting key reform initiatives undertaken by Bangladesh’s interim government. Seck said this when he made a farewell call on Chief Adviser Prof Muhammad Yunus at the State Guest House Jamuna. The Chief Adviser thanked Seck, who is retiring in January, for support during his tenure at World Bank-supported projects in critical sectors like infrastructure, climate resilience, service process digitalisation, education, healthcare and poverty alleviation. Seck told the Chief Adviser that the World Bank approved nearly $1.2 billion in three financings on December 19 to help Bangladesh build climate resilience and environmental sustainability while improving health, nutrition and water and sanitation services in Chattogram city. Prof Yunus urges focus on attitudes, ethics in skilling young workforce On Sunday, the Economic Relations Division (ERD) and the World Bank signed two financings totalling $900 million. One of the projects will develop secondary cities by constructing climate-resilient and gender-responsive infrastructure along the economic corridor from Cox's Bazar in the south to Panchagarh in the north. The other financing, a $500 million development policy credit to support green growth, will be disbursed to the national treasury by this month. The World Bank’s development portfolio stands at about $ 45 billion since 1972, which has made a significant contribution to the development trajectory of Bangladesh, particularly in reducing poverty, ensuring sustained economic growth, and improving education, health, and disaster management. Bangladesh Bank ready to ensure enhanced cash flow: Dr Yunus The Chief Adviser wished Seck and his family good health on his retirement. Special Envoy to Chief Adviser Lutfey Siddiqi, senior secretary for SDG affairs Lamiya Morshed and ERD secretary Md. Shahriar Kader Siddiky were among others present on the occasion.

World Bank and Asian Development Bank have approved budgetary support loans worth $ 1.1 billion to accelerate the interim government's reform and development activities. The total budget support is expected to be available by December this year, according to a release from Finance Ministry.  Of the total amount the World Bank will provide $500 million and ADB will give $600 million.  Bangladesh, ADB ink $600m loan deal for structural reforms In addition to the budget support, the World Bank has also approved project support of $379 million for the health and nutrition sector and  $ 280 million for the development of the water supply system in Chittagong.  On December 18, 2024, a loan agreement of $ 600 million was signed between the Government of Bangladesh and the Asian Development Bank (ADB) for the programme titled Strengthening Economic Management and Governance Program, Subprogram. On December 19, 2024, the World Bank approved the provision of $ 500 million in budget support to Bangladesh. ADB to lend USD 100 million to Bangladesh for infrastructure dev The World Bank provided this budget support under the Second Bangladesh Green and Climate Resilient Development Credit for the successful achievement of reform activities for green and climate-resilient development.  

Dhaka, Dec 21 (UNB)-World Bank’s Board of Executive Directors has approved three projects worth $1.16 billion to help Bangladesh improve health services, boost water and sanitation services and achieve greener and climate-resilient development. The $500 million Second Bangladesh Green and Climate Resilient Development Credit will support reforms to help the country’s transition to green and climate-resilient development. The financing supports policy reforms to improve public planning and financing and implementation for green and climate-resilient interventions at local and national levels and promote clean and resource-efficient production and services in key sectors, said a press release on Thursday. As a prerequisite to the credit, the Planning Commission has adopted the Multi-Year Public Investment Program Guidelines for key sectors, integrated with the Medium-Term Budget Framework. DSE trading ends on upward trend; index increased by 13.36 points The financing also supports policies to reduce air pollution, improve environmental enforcement, expand access to carbon markets, enhance sustainable water and sanitation services, improve the efficiency of the Bangladesh Delta Plan 2100, and advance a climate-resilient and sustainable environment. To effectively implement the Delta Plan, the Planning Division has adopted the Delta Appraisal Framework. The financing also supports sustainable public procurement incorporating environmental and social considerations. It will further help improve the energy efficiency of buildings and appliances and incentivize the construction sector to become greener. Stock Regulatory measures on several market manipulators caused a plunge last week: Analysts The $379 million Health, Nutrition, and Population Sector Development Program-For-Results will help improve access to quality health and nutrition services and build resilient health systems in Sylhet and Chattogram divisions. It will provide quality health, nutrition, and population services to about 5.1 million people. The program will help reduce maternal and neonatal mortality by increasing the number of births, both normal delivery and Caesarian section deliveries, in public health facilities. Alongside the World Bank financing, the Global Financing Facility for Women, Children and Adolescents (GFF) is providing a catalytic $25 million grant to support the government in prioritizing interventions such as child nutrition, adolescent health, quality maternal and newborn care, data use, and coordination. The $280 million Chattogram Water Supply Improvement Project will provide safe water through new and rehabilitated piped water connections to over one million people in Chattogram.  It will build about 200,000 new household water connections and provide improved sanitation services to about 100,000 people in low-income communities. This project is part of a World Bank South Asia regional initiative or program of programs to provide Water, Sanitation and Hygiene (WASH) services to about 100 million people across the region by 2035. BMPCA urges lower call rates, end to call drops The project will also help the Chattogram Water Supply and Sewerage Authority (CWASA) improve operational efficiency and financial sustainability and address issues related to water loss such as high levels of leakage, metering inaccuracies, and illegal connections. “Bangladesh is among the most vulnerable countries to climate change and faces immense pollution challenges. Improving climate resilience in every sector and tackling pollution has become a critical development priority,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan. “This new financing will help bring essential services such as health and water and sanitation to the people of Bangladesh while laying the foundation for clean, climate-resilient and sustainable development.”

The Asian Development Bank (ADB) and the World Bank will provide $600 million and $500 million in loan assistance respectively by December 2024, said Finance Secretary Dr Md Khairuzzaman Mozumder  on Tuesday. He made the disclosure during a press conference at the Ministry of Finance, organised marking the interim government’s 100-day milestone. Responding to a query from journalists on the amount of loan commitments received by the interim government, Dr Mozumder said the policies implemented by the interim administration have been positively received by donor agencies such as the International Monetary Fund (IMF) and the World Bank. “Our interim government’s policy measures have yielded good results, exceeding our initial expectations in terms of funding. For instance, we have successfully negotiated $600 million in loans with ADB and expect to receive the funds by December,” the finance secretary said. World Bank and ADB to provide $2.5 billion to reform banks and financial sector He also highlighted progress with the World Bank, which has agreed to provide $500 million in loan support within the same timeframe. “Originally, these loans were set at $300 million and $250 million, respectively, but were later doubled due to favourable negotiations.” The government is seeking further financial assistance from the IMF, Dr Mozumder said adding, “We have requested an additional $1 billion in support from the IMF for this year. Discussions are set to conclude when the IMF team visits on 4 December, and we are optimistic about the outcome.” ADB senior officials meet Prof Yunus; keen to support vital structural reforms The finance secretary expressed confidence in the government’s ability to implement its policies effectively and secure continued support from international financial institutions. Chaired by Finance Adviser Salehuddin Ahmed, the press conference was attended, among others, by Financial Institutions Division Secretary Nazma Mubarak, Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky, and National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan.

Though two separate deals were signed with the World Bank and the Asian Development Bank about a year ago to install some 17.5 lakh (1.75 million) smart pre-paid metres, the Titas Gas Transmission and Distribution Company has made little progress in implementing the project. “Only some individual consultants were appointed by Titas Gas PLC. No project management consultant (PMC) has been appointed as yet,” said a senior official of the Energy and Mineral Resources Division. Explaining the significance of the PMC he said has it critical role in implementing a project as it holds the responsibility to plan and design the project. “The main technical aspects remain in the hand of the PMC. Normally one or two foreign companies are appointed as PMC”, he told UNB. Newly appointed Managing Director of the Titas PLC Shahnewaz Parvez also admitted the poor progress of the smart prepaid metre project. He, however, said that the appointment of PMC is under process and hoped that the Titas will be able to appoint the consultant soon. Official sources said Titas Gas signed two separate loan agreements in November last year with the World Bank and ADB to install a total of 17.5 lakh prepaid meters under two projects. On November 23 in 2023, Titas signed a loan agreement with the World Bank for installation of 11 lakh smart prepaid meters under the Gas Sector Efficiency and Carbon Abatement Project. The gas transmission and distribution company also signed another agreement with the Asian Development Bank on November 28 in 2023 for the installation of 6.50 lakh smart prepaid meters under the Smart Metering Energy Efficiency Improvement Project. Read: JS body recommends taking steps to gain prepaid meter consumers’ trust The government had undertaken the smart prepaid metre project for the Titas Gas PLC, to reduce the excessive system loss to a reasonable level. As the oldest and largest gas distribution both in terms of its operational area and volume of natural gas sales among the six gas distribution companies, the Titas Gas has been reeling with 7 percent system loss. Titas Gas officials said the company has to incur a loss of Tk 150-180 crore per month for its system loss. They said the entity can save Tk1,800-2,160 crore a year if such a huge system loss is checked. Titas Gas has so far installed about 3.5 lakh of prepaid gas meters for its household consumers mainly in Dhaka city with the financial support of the Japanese donor agency JICA. Its prepaid meters were installed mainly in Gulshan, Banani, Mohammadpur, Paltan, Ramna, New Market, Khilgaon and Segunbagicha areas. Titas Gas currently supplies gas to over 2.878 million consumers, including some 2.853 million household consumers, 12,078 commercial consumers, 5,429 industrial consumers, 1,755 captive power plants, and 396 CNG stations. As per the official statistics, Titas Gas alone holds 55% of the gas market share, while the other five companies have 45%. Read more: Electricity bills harassments: Postpaid consumers can turn to prepaid meters Its vast operational area covers Dhaka, Manikganj, Gazipur, Narayanganj, Munshiganj, Narsingdi, and Mymensingh. It annually sells about 14,459.41 MMCM (million cubic meters) of gas (2021-23 fiscal years), to earn a revenue of Tk26,387.12 crore.

Bangladesh's post-COVID recovery continues to be impacted by high inflation, balance of payments deficit, financial sector vulnerabilities and increasingly limited job opportunities for its youths, especially women and educated youths, says the World Bank. The multinational lender that provides financial support to developing countries for projects aimed at reducing poverty and fostering economic development said this in its twice-yearly-update, released on Tuesday. “In recent years, Bangladesh’s growth has not translated into job creation for the large number of youths entering the job market every year. Particularly, the educated youth and women faced difficulty in getting jobs to fulfill their aspirations,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan. He went on to say, “But time and again, Bangladesh has shown extraordinary resilience and determination in the face of adversity. I am confident that with urgent and bold reforms to enhance economic and financial governance, improve business environment, Bangladesh can return to a strong and inclusive growth path, with millions of jobs for its youth.” The latest Bangladesh Development Update highlights that global and domestic factors have created a challenging macro-fiscal context for the country. Bangladesh's real GDP growth moderated to 5.2% in FY24, primarily due to weak consumption and exports. World Bank cuts Bangladesh’s growth to 4 pc in FY25 for floods, uncertainty It is projected to decelerate to 4.0 percent in FY25, driven by subdued investment and industrial sector activities, before accelerating to 5.5 percent in FY26 and returning to a robust growth trajectory thereafter. Bangladesh also faces increasing income inequality, particularly in urban areas. From 2010 to 2022, Bangladesh's Gini index—a measure of income inequality—increased by nearly three points from 0.50 to 0.53. The report highlights urgent and bold reforms that are necessary to help the country return to a strong, inclusive and sustainable growth path. Despite the overall unemployment rate declining between 2016 and 2022, young people face significantly higher unemployment rates, particularly in urban areas. The availability of jobs has declined for urban educated youth, and job creation in large industries, like the ready-made garments sector, has stagnated. Since 2016, while more jobs were created in Dhaka, three divisions—Chattogram, Rajshahi, and Sylhet—faced significant net employment losses.  Inflation, driven by high food and energy prices, averaged 9.7% in FY24. Inflation spiked in the month of July and moderated in August. It is expected to remain elevated in the near term, but gradually subside in the medium term if supply-side issues stabilize and prudent monetary and fiscal policies are maintained.  World Bank Vice President for South Asia Region to meet CA, Finance Adviser The fiscal deficit is estimated to have moderated marginally to 4.5% of GDP in FY24 and is expected to remain within the government's target of 4.3 percent of GDP in FY25, with fiscal space for productive expenditures increasing only gradually. The implementation of the Annual Development plan declined to 80.9 percent in FY24 compared to 85.2 percent in FY23. The current account deficit narrowed to $6.5 billion in FY24, thanks to a contraction in imports and robust remittances. Remittances declined in July due to disruptions but rebounded. The balance of payments deficit also improved. “Pressure on the external sector is expected to persist in FY25, easing later if global conditions improve and exchange rate flexibility increases,” said Dhruv Sharma, World Bank Senior Economist and Co-author of the report. In May 2024, Bangladesh Bank implemented a crawling peg exchange rate system as a step towards a market driven exchange rate system. This led to a narrowing in the gap between the formal and informal exchange rates. While the banking sector faces tight liquidity conditions and elevated non-performing loans the Bangladesh Bank has made restoring discipline and stability in the sector a priority alongside managing inflation.