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.

A meeting among Dhaka University (DU), University Grants Commission (UGC) of Bangladesh and World Bank was held on Sunday. The meeting took place at the Vice-Chancellor's Lounge, where Chairman of Bangladesh University Grants Commission Prof. Dr. SMA Faiz, Vice-Chancellor of DU  Prof. Dr. Niaz Ahmed Khan, Pro-Vice Chancellor (Academic) Prof. Dr. Mamun Ahmed, Pro-Vice Chancellor (Administration) Prof. Dr. Sayema Haque Bidisha, Treasurer Prof. Dr. M Jahangir Alam Chowdhury, UGC Members- Prof. Dr. Mohammad Tanzimuddin Khan and Prof. Dr. Mohammad Anwar Hossen, World Bank Senior Education Specialist TM Asaduzzaman, Senior Education Advisor Dr. Md Mahamud Ul Hoque and Project Director Prof. Dr. Asaduzzaman were present. During the meeting they discussed various issues including implementation of different development projects at DU with the financial assistance from the World Bank. The meeting also discussed the construction of a residential hall for DU female students, formation of a special fund for providing scholarship among financially challenged students, improving Wi-Fi network at DU, development of DU Medical Centre and undertaking joint research and training programs.

Growth in South Asia is expected to increase to 6.4 percent this year, exceeding earlier projections and keeping the region on track to be the fastest growing in the world, according to the World Bank. The region can grow even faster and achieve its development goals by unlocking untapped potential by increasing women’s participation in the labor force and opening further to global trade and investment, said the World Bank in its twice-yearly regional outlook released on Thursday. The latest South Asia Development Update, Women, Jobs, and Growth forecast a broad-based upturn in the region, supported by strong domestic demand in India and faster recoveries in most other South Asian countries. Growth is expected to remain robust at 6.2 percent a year for the next two years, it said. This forecast is subject to downside risks including extreme weather, debt distress, and social unrest. Policy missteps such as delays in planned reforms could also set the region back. Fragile fiscal and external positions leave little buffer against these risks. WB to provide USD 3.5 billion to support Bangladesh's reform initiatives: Ajay Banga “South Asia’s outlook is undoubtedly promising, but the region could do more to realize its full economic potential,” said Martin Raiser, World Bank Vice President for South Asia. “Key policy reforms to integrate more women into the workforce and remove barriers to global investment and trade can accelerate growth. Our research shows that raising female labor force participation rates in the region to those of men would increase regional GDP by up to 51 percent.” Female labour force participation in South Asia is among the lowest in the world. Only 32 percent of working-age women were in the labour force in 2023, compared to 77 percent of working-age men in the region. For all South Asian countries except Bhutan, female labour force participation rates in 2023 were 5 to 25 percentage points lower than in countries at similar levels of development. This shortfall in the female labour force is most pronounced after marriage. On average, once married, women in South Asia reduce their participation in the workforce by 12 percentage points, even before they have children. Bangladesh has the opportunity to implement unaddressed critical reforms: WB Vice President The shift toward service activities, usually associated with greater demand for female labour, has not yet led to higher levels of female employment in the region, and firms often state an explicit preference for male workers. Supply-side constraints such as childcare access, mobility and safety, legal restrictions, and conservative gender norms are also significant barriers. “South Asia’s female labor force participation rate of 32 percent is well below the 54 percent average in emerging market and developing economies,” said Franziska Ohnsorge, World Bank Chief Economist for South Asia. “Increasing women’s employment requires action from all stakeholders. Our report recommends a multi-pronged effort where governments, the private sector, communities and households all have a role to play.” The report’s recommendations include legal reforms to improve gender equality, measures to accelerate job creation, and removal of barriers to women working outside the home such as lack of safe transport and quality child and elder care. Such measures could be more effective if social norms became more accepting of female employment. Another key area of reform is increasing trade openness. Most countries in South Asia rank among the least open to global trade and investment. This greatly limits the region’s ability to take advantage of the reshaping of global supply chains. Within the region, greater export orientation has been linked to greater female employment. Therefore, increased openness could help the region spur growth as well as boost job creation, especially for women.  

Bangladesh's economy made a strong turnaround from the COVID-19 pandemic, but the post-pandemic recovery continues to be disrupted by high inflation, a persistent balance of payments deficit, financial sector vulnerabilities, and global economic uncertainty, says the World Bank in its twice-yearly update. Released today, the latest Bangladesh Development Update says that urgent monetary reform and a single exchange rate regime will be critical to improve foreign exchange reserves and ease inflation. Greater exchange rate flexibility would help restore balance between demand and supply in the foreign exchange market.  “Bangladesh’s strong macroeconomic fundamentals have helped the country overcome many past challenges,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan.  “Faster and bolder fiscal, financial sector, and monetary reforms can help Bangladesh to maintain macroeconomic stability and reaccelerate growth,” he added. Structural reforms will be key to diversify the economy and build resilience over the medium and long term, including measures to raise government revenues to support investments in infrastructure and human capital, said the global lending agency.  Persistent inflation eroded consumer purchasing power, while investment was dampened by tight liquidity conditions, rising interest rates, import restrictions, and increased input costs stemming from upward revisions in administered energy prices. Foreign Minister for concluding PTA with Indonesia Private sector credit growth slowed further in FY24, reflecting a broader slowdown in investment.  The non-performing loan (NPL) ratio in the banking sector remains high and understates banking sector stress due to lax definitions and reporting standards, forbearance measures, and weak regulatory enforcement.  The balance of payments deficit moderated over the first half of FY24 driven by a surplus in the current account. The report’s companion piece, the latest South Asia Development Update — Jobs for Resilience, also released today, says that South Asia is expected to remain the fastest-growing region in the world for the next two years, with growth projected to be 6.0% in 2024 and 6.1% in 2025.  Growth in South Asia is expected to be driven mainly by robust growth in India and Bangladesh, and recoveries in Pakistan and Sri Lanka. But this strong outlook is deceptive, says the report. For most countries, growth is still below pre-pandemic levels and is reliant on public spending.  Persistent structural challenges threaten to undermine sustained growth, hindering the region’s ability to create jobs and respond to climate shocks.  Private investment growth has slowed sharply in all South Asian countries and the region is not creating enough jobs to keep pace with its rapidly increasing working-age population. “South Asia’s growth prospects remain bright in the short run, but fragile fiscal positions and increasing climate shocks are dark clouds on the horizon,” said Martin Raiser, World Bank Vice President for South Asia.  “To make growth more resilient, countries need to adopt policies to boost private investment and strengthen employment growth.” Saima Wazed, Princess Dechen Yangzom Wangchuck launch Bhutanese version of Bangabandhu’s ‘Unfinished Memoirs’ South Asia’s working-age population growth has exceeded than that in other developing country regions.  The share of the employed working-age population has been declining since 2000 and is low.  In 2023, the employment ratio for South Asia was 59%, compared to 70% in other emerging markets and developing economy regions.  It is the only region where the share of working-age men who are employed fell over the past two decades, and the region with the lowest share of working-age women who are employed. “South Asia is failing right now to fully capitalize on its demographic dividend. This is a missed opportunity,” said Franziska Ohnsorge, World Bank Chief Economist for South Asia. “If the region employed as large a share of the working-age population as other emerging markets and developing economies, its output could be 16% higher.” Read more: Money launderers destroying country's economy: Salma Islam

After the World Bank did it last week, the International Monetary Fund (IMF) today (October 11, 2023) revised downward its growth forecast for the Bangladesh economy in the 2023-24 fiscal. The IMF lowered its projection to 6.0 percent from 6.5 percent. The World Bank last week projected its new growth figure for the Bangladesh economy in 2023-24 as 5.6 percent, down from its previous projection of 6.2 percent. IMF outlook worsens for a 'limping' world economy. Mideast war poses new uncertainty The IMF also said Bangladesh's economy grew 6 percent in the 2022-23 fiscal, in its flagship World Economic Outlook publication, released globally on Tuesday. The global lender revised upward its projections for Bangladesh's growth to 6 percent for the fiscal year 2022-23 from its previous forecast of 5.5 percent. IMF satisfied with BBS for efforts to meet conditions: Official

Former Chief Economist of the World Bank's Dhaka office Zahid Hussain said on Wednesday (October 04, 2023) that the actual calculation of foreign exchange entering into the country and leaving does not match.He said that the reserves are decreasing due to a deficit in the balance of payments or transaction balance. The net reserves of foreign exchange as per BPM-6 is below $18 billion.Zahid gave this information while speaking at the annual conference of the International Business Forum of Bangladesh (IBFB) held in a city hotel on Wednesday. Indian High Commissioner to Dhaka, Pranay K. Verma, was the chief guest at the event. Read: IMF reviewing reserves, macroeconomic condition ahead of next fund releaseHe pointed out that one of the reasons for the overall macroeconomic instability of the country is external. The major aspect of this external factor is the price of the dollar.The exchange rate of the US dollar was remained below Tk100 in 2021. But in September 2022 it went above Tk100. It is still above Tk110 even though it has decreased a bit now.Zahid complained that the account of how much foreign currency is entering the country and how much currency is going outside does not match with the reserve. Read: Why Bangladesh’s forex reserves dipped to $21.15 billion? Economists cite reasonsHe said that usually this calculation is sometimes positive and sometimes negative. But recently it is seen in case of Bangladesh, this account has been negative for quite some time."This means that something is happening beyond our knowledge,” he said.

Bangladesh has dropped six places on Surfshark’s annual Digital Quality of Life (DQL) Index since last year. The country ranked 82nd among 121 countries, according to Surfshark’s 5th annual DQL index. The Digital Quality of Life Index is an annual study that ranks 121 countries by their digital wellbeing based on 5 core pillars. Also read: Bangladesh climbs 5 spots in latest passport ranking, still behind Sri Lanka and Libya The study is based on the United Nations’ open-source information, the World Bank, and other sources. Out of the index’s 5 pillars, Bangladesh performed best in internet quality, claiming 65th place.  

The World Bank on Wednesday (August 30, 2023) approved $200 million to help Bangladesh improve primary healthcare services for treatment, prevention and referral for common illnesses including mosquito-borne diseases like dengue, and medical waste management in Dhaka North and South City Corporations, Chattogram City Corporation, and Savar and Tarabo municipalities. The Urban Health, Nutrition and Population Project will establish a network of primary health centers offering a broad range of health, nutrition, and population services along with a direct referral system with secondary and tertiary-level facilities. About 2.5 million children under five in these urban areas will receive services, according to a release from the WB. Read : World Bank’s cooperation sought to build power transmission lines from Nepal to Bangladesh The credit is from the World Bank’s International Development Association (IDA), which provides concessional financing, and has a 30-year term with a five-year grace period. The project will improve antenatal services for women, with a target of over 250,000 women receiving at least four checkups during pregnancy. It will also support hypertension screening and follow-up of about 1.3 million adults. To reduce out-of-pocket expenditure on medical care for the poor people, the project will renovate selected existing public health facilities, including government outdoor dispensaries, and family planning clinics. The project will also focus on environmental health and preventive services like mosquito control, medical waste management, and behavior change communication to promote healthy lifestyles to prevent illnesses and mitigate the effects of climate change and air pollution on human health. Read : Govt, World Bank ink $300 million financing deal for skill development, employment of rural youths It will support the development and implementation of a multi-sectoral strategy to manage infectious disease outbreaks in cities and municipalities. To prevent dengue, the project will introduce a climate-based dengue early warning system and outbreak response capacities as well as take measures to clear breeding sites. Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan, said that Bangladesh has made remarkable progress in improving healthcare, particularly in rural areas. “But urban areas have limited public healthcare facilities. Hence, poor people and slum dwellers are often forced to turn to more expensive private healthcare. Further, with high population density, climate change, and rapid urbanization, new health challenges are emerging, including an increase of dengue cases, infectious and non-communicable diseases," he said. Read : Dengue: 7 more die, 2367 hospitalised in 24hrs Iffat Mahmud, Senior Operations Officer at the World Bank and Task Team Leader for the Project, said that the impact of climate change on mosquito-borne and infectious diseases is often overlooked. An overreliance on fogging or spraying targeting adult mosquitoes and untargeted larval control is not an efficient use of resources. “As mosquito lifecycle is influenced by climatic conditions, the project will strengthen the mosquito control laboratory and build capacities to implement innovative mosquito control measures and other community-based interventions,” the World Bank official said.