United News of Bangladesh

Release of International Monetary Fund (IMF) loan for Bangladesh remains stalled due to pending reforms in the financial sector, conditions to cut subsidies and climate resilience issues. The global lender has imposed nearly a dozen conditions, including reforms in the banking sector and banking laws, capacity building of the National Board of Revenue (NBR), single-click access to taxpayer information, removal of subsidies on fuel and electricity, setting a market-based foreign exchange rate and climate resilience issues. The government is seeking US $2.0 billion additional loan as budget support from the IMF along with the remaining tranches of the $4.7 billion loan program. The government is seeking to reactivate the suspended IMF loan program and secure new funding. However, the IMF has made macroeconomic reforms and climate risk management capabilities the primary preconditions for this financing. A high-level delegation from the IMF’s Fiscal Affairs Department recently completed their visit to Dhaka to review progress in key sectors and assess tax policies, which will determine the future of the loan program. According to relevant sources, financial sector reforms and climate resilience will be a major consideration in the IMF’s new credit program. The incomplete reform activities under the previous loan program with the IMF got priority under the new program. As a result, this visit was not limited solely to assessing climate policies, but also played a crucial role in setting the future direction of economic reforms. A six-member high-level delegation from the IMF’s Technical Assistance (TA) mission visited Bangladesh at a time when the country's capacity to address climate risks, economic reforms, and the potential for new international financing are moving in parallel. The main goal of the visit, which ran from July 19 to July 30, was to conduct a full evaluation of Bangladesh’s policies, financial structures, and institutional capabilities in tackling climate change. The findings of this evaluation will also carry significant weight in discussions regarding a potential new loan program. Led by Suphachol Suphachalasai, Senior Economist in the Climate Policy Division of the IMF’s Fiscal Affairs Department, the delegation's primary focus is the 'Climate Policy Diagnostic' (CPD). Through this diagnostic, Bangladesh’s climate change mitigation policies, financing framework, and risk management capabilities will be thoroughly examined. Additionally, the team reviewed the country's overall macroeconomic situation and discussed a potential new loan program with the government. The loan program under the Resilience and Sustainability Facility (RSF) is another major topic of discussion during this visit. Under the RSF, Bangladesh received a loan facility of 1 billion Special Drawing Rights (SDR), equivalent to approximately $1.4 billion. While two-thirds of the funds have already been released, the remaining portion remains suspended. Steps have now been taken to reactivate the program. Notably, Bangladesh was the first country in Asia to secure this facility. In a report on Bangladesh, the IMF noted that the RSF would complement the Extended Credit Facility (ECF) and Extended Fund Facility (EFF). The fund aims to support measures implemented by the Bangladesh government to counter the impacts of climate change, while also helping build climate resilience and mobilizing additional public and private financing. Meanwhile, the Finance Division recently launched the ‘Public Financial Management Reform Strategy 2025–2030.’ For the first time, this strategy document includes climate-smart public financial management and gender-responsive budgeting. Furthermore, in the FY2025–26 budget, approximately Tk 42,206.89 crore has been allocated across 25 ministries for climate-related expenditures, accounting for 10.09 percent of the total budget. The IMF delegation held a series of meetings with relevant ministries and divisions on economic matters. The mission also meeting with Finance Secretary Dr. Md. Khairuzzaman Mozumder. Then the meeting was also with Bangladesh Bank, Financial Institutions Division, NBR and the Ministry of Power and Energy, Ministry of Forest and Environment and some other ministries. Dr. Md. Khairuzzaman Mozumder told UNb that the IMF held separate meetings with officials from the Macroeconomic Wing and Budget Wing of the Finance Division to review progress on climate and disaster-related initiatives. Discussions covered the current status of the ‘Bangladesh Climate Development Partnership’ and the ‘National Strategy for Disaster Risk Financing,’ alongside a detailed evaluation of how climate risks are being integrated into macroeconomic planning, he said. “We hope that the IMF will consider different difficulties of Bangladesh to meet cent percent of the loan conditions. Despite some challenges, we are expecting the loans will be released in favour of Bangladesh,” said the finance secretary. Meetings with the Ministry of Water Resources addressed flood control measures, delta and coastal management, irrigation policy, and surface and groundwater management—considered key elements in assessing Bangladesh’s readiness to face the long-term impacts of climate change. According to officials, this IMF TA mission is not merely a routine evaluation; it represents a critical stage in shaping Bangladesh’s climate policies, economic reforms, and future international financing framework. The evaluations and recommendations from this visit are expected to play a decisive role in setting priorities for a new loan program. Commenting on the matter, economist Professor Abu Ahmed told UNB that reform measures must continue for the sake of the country's economy. He added that since Bangladesh is one of the countries most affected by climate change, enhancing national capacity to manage these impacts is an urgent necessity.

State Minister for Foreign Affairs Shama Obaed Islam on Sunday underscored the importance of enhanced collaboration between the Ministry of Foreign Affairs and IFRC in advancing climate resilience initiatives with special attention to women and children. Head of Delegation of the International Federation of Red Cross and Red Crescent Societies (IFRC) to Bangladesh Alberto Bocanegra paid a farewell call on the State Minister for Foreign Affairs at her office and discussed the issues. Bocanegra briefed the State Minister on the IFRC’s key humanitarian activities and achievements during his tenure in Bangladesh, highlighting the organization’s support in disaster preparedness, climate resilience, health services and assistance to displaced populations. He expressed his sincere appreciation for the continued support and constructive cooperation extended by the Government of Bangladesh throughout his tenure. Shama Obaed congratulated Bocanegra on the successful completion of his tenure and commended his leadership of the IFRC in Bangladesh. She appreciated the IFRC’s longstanding partnership with Bangladesh since the Liberation War and its valuable contributions to emergency response and humanitarian assistance. The State Minister particularly expressed appreciation for the IFRC’s sustained support during natural disasters, including floods, cyclones and other climate-induced emergencies as well as its assistance to the Rohingya humanitarian response. State Minister Shama Obaed wished Bocanegra every success in his future assignments and expressed confidence that the close partnership between Bangladesh and the IFRC would continue to grow under the leadership of his successor as well.

The lush green hills of the Chattogram Hill Tracts (CHT), known for their dense forests, flowing streams and rich biodiversity, are increasingly facing the harsh realities of climate change and environmental degradation. Deforestation, drying water sources, soil erosion and deadly landslides have become recurring threats in three hill districts -Rangamati, Khagrachhari and Bandarban, prompting the government to roll out a series of initiatives aimed at restoring ecological balance and strengthening climate resilience. According to the Ministry of Chittagong Hill Tracts Affairs, extensive afforestation programmes, watershed management activities and climate-resilient infrastructure projects have been taken to address mounting environmental vulnerabilities. Officials say the initiatives are designed not only to restore degraded forests and protect hill slopes, but also to safeguard the livelihoods of indigenous communities whose lives remain closely tied to the fragile hill ecosystem. Under the government’s Election Manifesto 2026, authorities have set targets to plant thousands of fruit-bearing, forest and medicinal saplings during the 2025-26 fiscal year. The ministry said 80,000 saplings will be planted in Rangamati, 82,250 in Khagrachhari and another 100,000 in Bandarban as part of the afforestation drive. Besides,  the Chittagong Hill Tracts Development Board has launched a broader plantation programme under the Prime Minister’s “One Child, One Tree” pledge, which forms part of a nationwide initiative to plant 2.5 billion trees over five years. Under the scheme, the board plans to plant 500,000 trees across 26 upazilas in the three hill districts over the next five years. Activities to plant 25,000 trees have already begun during the current fiscal year, according to official documents. Authorities believe the plantation drives will help stabilise vulnerable hill slopes, restore degraded forest areas and reduce the growing risks posed by climate-induced disasters.  

The government of Bangladesh has taken a project aimed at strengthening the resilience and livelihoods of poor and marginal communities in Cox’s Bazar, one of Bangladesh’s most disaster-prone districts,  through sustainable, nature-based solutions. The project, titled “PRO-ACT Bangladesh – Resilience Strengthening through Agri-Food Systems Transformation in Cox’s Bazar,” will be implemented by the Department of Agricultural Extension (DAE) under the Ministry of Agriculture and is set to run until June, 2028. With an estimated cost of Tk 53.01 crore, fully funded by foreign grants, the project seeks to improve food and income security, promote sustainable agriculture, and reduce disaster risks in four upazilas — Cox’s Bazar Sadar, Ramu, Ukhiya, and Teknaf. Under the initiative, 10,000 farmers will receive training and input support to cultivate nutrient-rich crops, while 600 families involved in aquaculture will be trained in modern fish-farming techniques. Besides, 1,050 farmers will be supported in toxin-free dry fish processing including branding and market access development. Read more: Access to credit for agri sector can enhance food security: Bangladesh Bank Governor The project also envisions creating five agricultural aggregation centres to boost market connectivity and promote ICT-based agricultural extension services. Local service providers and farmers’ groups will be trained on financial literacy, digital tools, and business planning to improve access to agricultural credit and strengthen value chains. To enhance disaster preparedness, communities will receive training on the Landslide Early Warning System (LEWS) and crop-based land use maps will be developed to integrate disaster risk reduction into agricultural planning. According to the Planning Commission, the project will play a pivotal role in mitigating the adverse effects of climate change and addressing the environmental degradation worsened by the Rohingya refugee influx — including deforestation, land erosion, and waterlogging. Funded by the European Union and implemented in collaboration with the Food and Agriculture Organization (FAO), Forest Department, and Department of Fisheries, PRO-ACT Bangladesh focuses on restoring ecosystems and strengthening the adaptive capacities of vulnerable populations. With a target to reach more than 54,000 beneficiaries, including smallholder farmers, women, and marginalised groups, the initiative aims to transform Cox’s Bazar’s agri-food systems through climate-smart agriculture, sustainable resource management, and inclusive economic opportunities. Officials said the project aligns with Bangladesh’s long-term climate adaptation goals and underscores the government’s commitment to building a resilient future in the face of worsening climate challenges. Read more: Bangladesh's food security at risk as farmland shrinks by 3.75 percent in 8 Years: BBS Survey Cox’s Bazar is facing frequent exposure to a wide range of natural hazards and extreme weather conditions such as cyclones, heavy rainfall, landslides, flash floods and  storm surges. In recent years, the district has been particularly vulnerable to recurring landslides and cyclones. The severity of these disasters is worsened by widespread poverty and the limited coping capacity of local communities — with about 33 percent of the district’s population living below the poverty line, according to UNDP. Since 2017, Cox’s Bazar has also hosted around one million Rohingya refugees, which has significantly increased the population at risk. The influx has contributed to new environmental and safety challenges, including deforestation, hill-cutting, and mounting pressure on infrastructure. Because of overcrowded settlements, hilly terrain, and temporary housing conditions, Rohingya families are particularly susceptible to severe weather events. Read more: Dream project derails; Khulna-Mongla railway struggles without freight flow

Bangladesh and Sweden have signed a grant agreement to implement a new project aimed at strengthening Bangladesh’s resilience to climate change and enhancing biodiversity protection. The project, funded by Swedish International Development Cooperation Agency (SIDA), will support the Ministry of Environment, Forest and Climate Change, the Department of Environment (DoE), and the Bangladesh Forest Department (BFD) in improving natural resource management and climate resilience. Environment Advisor Syeda Rizwana Hasan said the project will play a vital role in addressing environmental and climate challenges through institutional capacity building and innovative measures. She made the remarks after receiving the grant agreement at a ceremony held at the Department of Environment in Dhaka on Thursday. Hard-earned opportunity for reform shouldn’t be wasted: Ali Riaz The agreement for the project, titled “Strengthening Capacity of MoEFCC, DoE, and BFD for Natural Resource Management and Improved Climate Resilience”, was signed by Dr. A.K.M. Shahabuddin, Secretary (Routine Charge) of the Economic Relations Division (ERD), and Maria Stridsman, Chargé d’Affaires and Head of Cooperation at the Embassy of Sweden. Funded by a SIDA grant of SEK 5 million (approximately USD 0.53 million or BDT 64.4 million), the project will focus on three key components-building institutional capacity, improving monitoring of Ecologically Critical Areas (ECAs), and launching Bangladesh’s first Wildlife Trust Fund. Under the initiative, specialized training on environmental impact assessments will be provided, and the DoE will be equipped with modern tools to monitor pollution in critical rivers, including the Buriganga and Turag. Besides, priority will be given to restoring Sonadia Island, an important ECA, through baseline environmental assessments, mangrove restoration, sand dune stabilization, and establishing a turtle hatchery. Local communities will be engaged through the formation of Village Conservation Groups (VCGs) to support these efforts.

The government has approved 29 new projects under the Bangladesh Climate Change Trust Fund (BCCTF) to address the growing threats posed by climate change. The approval was granted at the 62nd meeting of the Trustee Board, held at the Ministry of Environment, Forest and Climate Change on Thursday. Chaired by Environment Adviser Syeda Rizwana Hasan, the meeting was attended, among others, by Lieutenant General (retd.) Jahangir Alam Chowdhury, Adviser to the Ministries of Home and Agriculture; Sharmin S. Murshid, Adviser to the Ministries of Women and Children, and Social Welfare; Cabinet Secretary Dr Sheikh Abdur Rashid; Secretary of Environment Dr Farhina Ahmed; and Secretary of Finance Dr Md Khairuzzaman Mozumder, among other high-ranking officials. These new projects have been designed to strengthen climate resilience, conserve the environment, and promote sustainable agricultural and urban development. Key initiatives include research on carbon emissions and climate-resilient agriculture in Bangladesh’s haor wetlands, as well as the development of eco-friendly technologies to enhance dairy production. Adviser Rizwana urges unified global action to tackle climate change The impact of climate change on plant phenology in four ecological hotspots will also be studied. Besides, the projects will focus on improving onion seed storage and production, adopting climate-smart agricultural technologies in char, haor, and coastal regions, and restoring water bodies in major urban centres like Dhaka, Chattogram, Khulna, Rajshahi, and Sylhet. Afforestation along five canals in Narayanganj and conservation efforts in Gazipur’s Lobonadaha Canal are also planned. To ensure access to clean drinking water in remote regions, solar-powered deep tube wells will be installed in the hill tracts of Rangamati, while safe drinking water initiatives will be introduced for affected communities in Bandarban. Other notable projects include subsidised jute bags as an alternative to plastic, expansion of palm and mangrove plantations, biodiversity conservation, and research on antibiotic-resistant bacteria. The projects will be implemented by various government agencies and research institutions, including the Chittagong Hill Tracts Development Board, the Department of Genetic Engineering and Biotechnology at the University of Chittagong, the Department of Public Health Engineering, the Bangladesh Agricultural University, the Bangladesh Livestock Research Institute, and the Department of Environment, among others. Hilly areas neglected in climate change interventions: Rizwana Speaking at the meeting, Adviser Syeda Rizwana Hasan emphasised the need for a coordinated approach to tackling climate change. She expressed optimism that these projects would not only drive sustainable development but also ensure significant progress in environmental conservation and biodiversity protection.

The Asian Development Bank (ADB) and the government of Bangladesh have signed agreements for $250 million in loans to strengthen climate and disaster resilience in 22 coastal towns in Bangladesh. Sharifa Khan, Secretary, Economic Relations Division, and Jiangbo Ning, Deputy Country Director, ADB, signed the agreements on behalf of Bangladesh and ADB, respectively on Monday.  “The project prioritizes local economic development in project towns by enhancing the livelihood resilience and adaptive capacity of vulnerable households through the graduation program in six project towns with high poverty levels,” said Deputy Country Director Jiangbo Ning.  Read more: ADB to fund urban transport, climate resilience, renewables projects worth $628 million “The project will support the Government of Bangladesh in achieving integrated and sustainable urban development to improve the livability of coastal towns in the face of increasing climate-related disaster risks,” Deputy Country Director Jiangbo Ning. The assistance under the Coastal Towns Climate Resilience Project will develop infrastructure for building climate resilience in coastal towns, including infrastructure to improve urban flood risk management such as stormwater drainage, nature-based solutions, water body restoration, and integrated waste management. Cyclone shelters with early warning systems will be established, taking into account the needs of the elderly, women, children, and persons with special needs.  Bridges, culverts, and roads with stormwater drainage will be constructed and rehabilitated. A comprehensive set of interventions in six project towns will be implemented to help vulnerable households, especially poor women, cope with climate shocks and develop livelihood resilience.  These include climate risk assessment for diversifying livelihoods, household skills and resources mapping, enterprise and employment matching, and provision of livelihood training. Read more: Bangladesh mandates ADB to advise on $400million expressway connecting 10 economic zones The project will strengthen the knowledge and capacity of the Local Government Engineering Department and the project towns in managing climate and disaster resilience.  They will be trained on nature-based and green solutions, gender equality and social inclusion-responsive climate and disaster risk sensitive master planning, and information technology-based remote monitoring to inform risk-based urban development plans and develop mitigation measures.  The project will also enhance public awareness to prepare for future emergencies and crises.  The ADB financing includes $246 million in regular and concessional loans and a $4 million grant from the Asian Development Fund. The Government of Bangladesh will contribute $60 million.

With increasing climate risks, Bangladesh needs to continue investments to strengthen climate resilience in the coastal zones to protect the development gains, says a new World Bank report launched on Monday. The report, “Bangladesh: Enhancing Coastal Resilience in a Changing Climate” highlights the country’s journey to reducing vulnerability to climate change and recommends further actions towards improving the resilience of its coastal region. It analyzes the drivers of risks, how the government has reduced these risks, and offers new perspectives and innovative solutions. Also read: World Bank to provide US$300 million to help Bangladesh’s pandemic response Despite vulnerability to climatic risks, Bangladesh has emerged as a global leader in climate change adaptation and is known for proactively investing in resilience. It shows how long-term investments in disaster risk reduction save lives, reduce economic losses, and protect development gains. This was possible due to a range of initiatives backed up by a strategic policy framework, from grassroot-level adaptation and community-based early warning systems to structural investments in infrastructure complemented by nature-based solutions and fostering innovation. Since independence in 1971, Bangladesh has reduced cyclone-related fatalities by 100-fold. However, a rapidly growing population, environmental degradation, and increasing climate risks are putting pressure on the existing natural and infrastructure systems in the coastal zone which is home to about 40 million people. Bangladesh needs to take further immediate actions to improve resilience. “Coastal resilience is not a static goal to be met, but rather a continuous process of adapting to changing conditions and finding synergies between development objectives,” said Dandan Chen, World Bank Acting Country Director for Bangladesh and Bhutan. “For the last fifty years, the World Bank has supported Bangladesh to build climate resilience and improve disaster risk management. Today, the country shares valuable experience in improving disaster preparedness and climate resilience and is an inspiration for other climate-vulnerable nations,” Chen said. The report finds that further investments in coastal resilience would produce an array of economic, social, and environmental benefits for Bangladesh. It lays out seven key recommendations to strengthen the resilience of the coastal region, including strengthening operation and maintenance of infrastructure; recognizing local knowledge; and utilizing state-of-art modeling tools. Given the changing climate and dynamic coastal processes, a risk management framework should act as the guiding principle for adaptive delta management. Also read: World Bank happy, congratulates Bangladesh on Padma Bridge Infrastructure investments need to be complemented with nature-based solutions. The coastal area can benefit from inclusive community participation and livelihood adaptation for sustainable resilience. Lastly, establishing an integrated framework that goes beyond risk reduction and includes growth, well-being, and sustainable development at its core. “Given the significant investment need, we can learn from past interventions and find innovative solutions. This report provides a first-of-its-kind analysis of all large investment projects since the 1960s”, said Swarna Kazi, World Bank Senior Disaster Risk Management Specialist and co-author of the report. “A key lesson learned is that there is huge potential in Bangladesh for nature-based solutions or hybrid solutions with a mix of green-grey infrastructure,” added Ignacio Urrutia, World Bank Senior Disaster Risk Management Specialist and co-author of the report. This report complements the forthcoming Bangladesh Country Climate and Development Report (CCDR), the World Bank Group’s new diagnostic report that integrates climate change and development considerations. Since 1972, the World Bank is helping Bangladesh build coastal and climate resilience and disaster preparedness. The first five World Bank projects committed to Bangladesh in 1972, included support to improve disaster preparedness in the coastal area in the aftermath of deadly cyclone Bhola. Currently, with an ongoing program of $1.9 billion, the World Bank is helping Bangladesh to build climate resilience through multipurpose cyclone shelters, embankments, early warning systems, weather services, and afforestation.

Finance Minister AHM Mustafa Kamal has said that US$ 80 billion is being planned for investment by 2030 to achieve climate resilience. Presenting his plan in parliament in his budget speech on Thursday, he said the government is going to implement the ‘Mujib Climate Prosperity Plan’, which is essentially a strategic investment framework for climate financing to move from climate risk to sustainable climate prosperity. The investment will be funded by both domestic and external sources, he added. He said that considering the immense importance of environmental protection, the government has made it mandatory to follow a pragmatic and inclusive environment-friendly plan in all development activities while addressing the risks of climate change. As part of the implementation of the global carbon emissions reduction target, the country’s updated ‘Nationally Determined Contribution’ was finalised in August 2021. By 2030, the target of reducing carbon-dioxide emissions has been set at 6.73 percent with the country’s own financing and technological capabilities. Also read: Budget FY23: Tk5,000 crore earmarked to combat pandemic Another 15.12 percent of this emission reduction has been provisioned subject to the availability of international funding and technical assistance. On the other hand, the process of formulating a ‘National Adaptation Plan’ to determine the long-term integrated adaptation strategy together with an action plan to tackle the country’s climate change is at the final stage. He said the updating of ‘Bangladesh Climate Change Strategy and Action Plan’ formulated in 2009 is in progress. In addition, steps have been taken to make all existing industries and newly established industries environment friendly. Following this, new decisions have already been taken on installation of 10 coal-fired power plants worth 12 billion USD with the generation capacity of 8,600 MW. Of these plants 4 have been canceled and the remaining 6 will be renewable or gas-based, on the basis of a feasibility study. We are working on ensuring availability of 40 percent of our energy resources from renewable sources by 2041. So far, 13 areas of the country have been declared as Environmentally Critical Areas on the basis of the finding of scientific studies aimed at conserving biodiversity and the natural environment, said the finance minister. In the last 13 years, a total of 35 new protected areas have been created, including 9 National Parks, 18 Wildlife Sanctuaries, 3 Eco-parks, 1 Botanical Garden, 2 Marine Protected Areas, and 2 Special Biodiversity Conservation Areas, bringing the total number of protected areas in the country to 51, said the financial minister.

The government is finalising a project aimed at enhancing the climate resilience of vulnerable communities who live on coastal islands and riverine chars in the country. The project titled, ‘Adaptation Initiative for Climate Vulnerable Offshore Small Islands and Riverine Charland in Bangladesh’ is under process for approval, according to an official document. Spanning over five years, the project will be implemented by the Ministry of Environment, Forest and Climate Change following UNDP’s National Implementation Modality. Read: COP26: Global competition launched to find top climate science communicators This project has four components. First one is: Enhancing climate resilience of households through climate-resilient housing, electrification and climate-proof water provisioning, and the second is increasing climate resilience of communities through climate-resilient infrastructure, climate risk mapping and inclusive cyclone preparedness. The third component is improving income and food security of communities by innovating and providing assistance to selected households for climate-resilient livelihoods practices while the 4th is boosting knowledge and capacity of communities, government and policymakers to promote climate resilient development on chars. According to the project proposal USD 2,007,828  is needed for Component 1 whereas USD 2,317,726, USD 3,397,068 and USD 614,700 will be needed for Component 2, Component 3 and Component 4 respectively. Project execution cost has been fixed USD 875,000 while Total Project Cost is USD 9,212,322. Implementing Entity Project Cycle Management Fee Of the project is USD 783,047. The US$ 9,995,369 has been sought from the Washington based Adaptation Fund (AF) to address the knowledge technical, financial and institutional barriers to climate-resilient housing, infrastructure and livelihoods, the document said.