United News of Bangladesh

The Asian Development Bank (ADB) on Thursday approved a $500 million policy-based loan to stabilise and reform the banking sector in Bangladesh by strengthening regulatory supervision, corporate governance, asset quality, and stability. The Stabilizing and Reforming the Banking Sector Program, Subprogram 1 will focus on policy reforms to promote finance sector resilience by enhancing banking sector governance, increasing the effectiveness of Bangladesh Bank’s liquidity management framework, and introducing immediate measures to resolve significant nonperforming loans in the banking system, according to a press release. The measures under the programme will support phased compliance with international banking norms, leading to integrity in asset quality information. ADB reaffirms robust support for Bangladesh’s reform drive, sustainable development The press release said that Bangladesh needs effective financial intermediation which can help business enterprises access credit and individuals obtain financial services from the banking sector. The banking sector has traditionally focused on industrial segments and creditworthy borrowers, with large sections of the population depending primarily on microfinance institutions.   Strengthening the banking sector, including digital infrastructure, will help provide longer-term financing sources and enable greater and cost-effective financial inclusion. ADB Principal Financial Sector Specialist Sanjeev Kaushik said the key binding constraints in the banking sector include a lack of robust asset quality, tight liquidity, and inadequate financial intermediation leading to low rates of financial inclusion. “The programme will bring significant value addition through building the regulator’s capacity for ensuring compliance with international norms, augmenting the capitalization of the banking sector and improving access to affordable finance for micro, small and medium enterprises.”  

Environment Adviser Syeda Rizwana Hasan on Tuesday said a master plan will be formulated for modern waste management in all divisional headquarters and municipalities under the Bangladesh Climate Development Partnership (BCDP). “To reduce urban temperatures, especially in Dhaka, greening initiatives will be undertaken,” Rizwana said at a meeting at the Secretariat with a delegation from the Asian Development Bank (ADB) which reviewed the progress of the BCDP. Besides, efforts will be made to repair vulnerable embankments in coastal areas, she added. The adviser added that safe and clean water facilities will be ensured for coastal communities with support from various development partners under the BCDP, she said. She said necessary steps will be taken to enhance the professional skills and knowledge of officials to effectively tackle climate risks. Graduation: Bangladesh remains confident; Dr Yunus orders precautionary measures A working group will be formed to outline the BCDP’s operational strategies and determine the next steps, Rizwana said adding that she has instructed relevant authorities to launch the BCDP website and other activities by July. Environment Secretary Dr Farhina Ahmed, Additional Secretary (Climate Change) Dr. Fahmida Khanom, and ADB’s Senior Climate Change Officer Mousumi Parvin, along with other senior officials from the bank, were present at the meeting.

Although the Asian Development Bank has projected a moderate 5.1 percent GDP growth Bangladesh for 2025-26 fiscal, the forecast may need to be revised downwards due to the recent imposition of higher tariffs on Bangladeshi exports to the US, said Hoe Yun Jeong, Country Director of the ADB’s Resident Mission in Bangladesh “Our projection was done before the US sweeping tariff. So our projection was 5.1 percent for the fiscal year 2026. Obviously it will adversary affect the overall Bangladesh export to  the US and also on the overall economic progress. That 5.1 percent needed to be downgraded little bit.” Hoe Yun Jeong said on Wednesday. He said these responding to questions from the reporters after releasing the ADB’s flagship publication Asian Development Outlook (ADO) April 2025 held at the ADB office in Dhaka. In its latest report, the ADB also projected Bangladesh's GDP to grow by 3.9 percent in the current fiscal year (FY2024-25), reflecting weaker domestic demand amid ongoing political and economic challenges. This outlook was part of the ADB’s Asian Development Outlook (ADO) for April 2025. Bangladesh must diversify its products and markets for export for the medium and the long term perspective, he said. Bangladesh a land of ‘crazy ideas’ that work: Dr Yunus tells foreign investors “Of course engaging and negotiating the US government is important, but it is a short term measure. More importantly Bangladesh must diversify its products and markets for export,” he said. He also suggested that Bangladesh should take this opportunity to rationalise its import tariff structure and reform its non-tariff barriers as well  considering its tariff regime is over protective. "So, this tariff reform should apply not only to the US but also to other countries," he said.

The Asian Development Bank (ADB), the Posts and Telecommunications Division, BTCL, and the Public-Private Partnership Authority (PPPA) signed a memorandum of understanding (MoU) on Monday to develop Bangladesh’s first green data center under a public-private partnership (PPP) model. PPPA Director General (Finance and Administration) A K M Abul Kalam Azad, Bangladesh Telecommunications Company Limited (BTCL) Managing Director Md. Anwar Hossain PTD Additional Secretary Abul Khair Mohammad Salehuddun and ADB Country Director and Hoe Yun Jeong, signed the MoU on behalf of their respective organizations at a ceremony held at the PPPA conference room in Dhaka on Monday. World Bank, ADB approve budget support worth $1.1 billion The state-of-the-art data center will be situated on a BTCL-owned site near Chattogram and built to international standards, ensuring high availability and operational scalability. It will be powered by renewable energy, offering commercial colocation services to public and private enterprises while meeting BTCL's internal data storage needs. “This initiative marks a significant step toward achieving Bangladesh’s digital vision, integrating cutting-edge technology and sustainable practices to support the country’s digital transformation,” said Hoe Yun Jeong. The project is expected to promote private investment in the infotech sector, creating opportunities for increased capital mobilization in digital technologies, he added. Bangladesh, ADB ink $600m loan deal for structural reforms A transaction advisory services (TAS) agreement will soon be signed to implement the project under the PPP model. ADB’s TAS support will include feasibility assessment, project structuring, tendering, and capacity building for stakeholders, fostering an environment conducive to private investment in the IT sector.

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.  

The Asian Development Bank (ADB) has approved a $100 million loan in additional financing to support critical infrastructure development through public–private partnerships (PPP) in Bangladesh.  “This project will enable Bangladesh to catalyse private sector financing, reduce pressure on public finance to address infrastructure development deficits, and create more employment,” said ADB Country Director for Bangladesh Hoe Yun Jeong on Monday. Abdul Hakim appointed as BPC Chairman “The loan will enhance the financial and institutional capacity of the Bangladesh Infrastructure Finance Fund Limited (BIFFL) to deliver its mandate of fostering an environment that supports sustainable private investments through the mobilisation of PPP, with a strong focus on gender and climate change.” Bangladesh is undergoing a transformative phase, driven by economic shifts and recent political transition and the country's infrastructure development, primarily driven by the public sector, faces challenges due to limited resources and implementation constraints, it said. The ADB loan aims to address this gap by providing long-term financing to BIFFL, facilitating the completion of critical infrastructure projects that will foster economic growth. Victims demand justice for abduction, torture by 'ex- RAB commander Faruqi' The Strengthening the Bangladesh Infrastructure Finance Fund Limited Project – Additional Financing will strengthen BIFFL’s capacity to crowd in private sector financing and facilitate new technologies brought by international sponsors and foreign direct investors. With ADB’s support, BIFFL will establish gender screening of subprojects and develop a gender equality and social inclusion strategy.

The Asian Development Bank (ADB) and Tanveer Dal Mill and Flour Mills Limited, a member of the Meghna Group of Industries (MGI), have signed a $20 million loan agreement to support the construction of a greenfield state-of-the-art, energy-efficient flour milling plant in Bangladesh. This new facility will double the MGI’s wheat flour output and enable the production of quality wheat products while consuming 37% less electricity than existing plants, said ADB on Thursday. The improved energy efficiency is expected to lower operational costs and reduce carbon dioxide emissions by approximately 8,200 tons annually. The plant will produce 660,000 metric tons of wheat, contributing to domestic agriculture production and enhancing food security. ADB pledges $24.3 million to finance establishment of solar power plant in M'singh "This project marks a significant step toward the advancement of sustainable industrial development in Bangladesh. By promoting energy-efficient technologies and improving product quality, ADB and MGI are directly contributing to the country's food security, food safety, economic resilience, and environmental sustainability," said ADB Director General for Private Sector Operations Suzanne Gaboury. The demand for wheat in Bangladesh has been steadily increasing, but domestic production has not kept pace. In 2022, the country consumed about 8.8 million tons of wheat, while local production exceeded only one million tons. “The project will ensure food security, create additional employment opportunities for 160 individuals, foster relationships with 150,000 vendors in the SME sector, support market creation and industrialization, and more importantly, contribute sustainable GDP growth in the Bangladesh economy,” said MGI’s Chairman and Managing Director Mostafa Kamal. Established in 1976, MGI is one of Bangladesh’s leading and most diversified conglomerates, with interests spanning fast-moving consumer goods, building materials, chemicals, energy, packaging, and logistics.

Asian Development Bank (ADB) Vice President Yingming Yang has said he is encouraged to see Bangladesh’s advanced preparation for the post-LDC graduation era, including adequately dealing with the financing and market access challenges that will also be outlined in the next five-year plan. “I have noticed a strong drive for meaningful reforms to address medium-term economic and development challenges,” he told UNB in an exclusive interview on Thursday before wrapping up his Bangladesh visit. The vice-president who is responsible for the management of the operations of ADB’s Central and West Asia Department and South Asia Department, said the sincerity of the government in building resilience to climate change, which will help mitigate macroeconomic and fiscal risks, is laudable. Revenue-based fiscal consolidation, quality infrastructure and human capital development, diversification of trade, increasing foreign direct investment, lowering financial sector vulnerabilities along with the reduction of non-performing loans, enhancing investment climate, and strengthening governance are widely discussed and prioritised, Yang said.

The number of people aged 60 and above in developing Asia and the Pacific is set to nearly double by 2050 to 1.2 billion—or about a quarter of the total population—significantly increasing the need for pension and welfare programs as well as healthcare services, said a new report on Thursday (May 02, 2024). At the same time, economies have an opportunity to reap a “silver dividend” in the form of additional productivity from older people, which could boost gross domestic product in the region by 0.9% on average, said the Asian Development Bank (ADB). “Asia and the Pacific’s rapid development is a success story, but it’s also fueling a huge demographic shift, and the pressure is rising,” said ADB Chief Economist Albert Park.  “Governments need to prepare now if they’re going to be able to help hundreds of millions of people in the region age well. Policies should support lifetime investment in health, education, skills, and financial preparedness for retirement. Family and social ties are also important to foster healthy and productive populations of older people and maximize their contribution to society.” Developing Asia and the Pacific is unprepared to secure the well-being of its rapidly aging population as the growing share of older people in the region face challenges from low pension coverage to health problems, social isolation, and limited access to essential services, according to the multilateral development bank. ADB, WTO strengthen collaboration for sustainable economic growth in Asia-Pacific region While longer lifespans reflect the region’s development success, comprehensive policy reforms are urgently needed to support the welfare of older people, according to “Aging Well in Asia: Asian Development Policy Report,” released on Thursday by the Asian Development Bank (ADB) at its 57th Annual Meeting. According to the report, 40% of people over age 60 in Asia and the Pacific lack access to any form of pension—with women disproportionately affected, as they are more likely to do unpaid domestic work.  As a result, many older people in the region have no choice but to work well beyond retirement age to survive.  Among those still working at age 65 or older, 94% work in the informal sector, which typically doesn’t provide basic labor protections or pension benefits. Physical and mental health challenges also increase with age.  FBCCI urges govt policy to facilitate backward linkage industries Around 60% of older people in Asia and the Pacific do not attend or receive regular health checks, while 31% report depressive symptoms owing to illness, social isolation, and economic insecurity.  Older women in the region are also more likely than older men to suffer from ill health, from depression to diabetes and hypertension.  The report recommended a wide range of policy measures to support healthy and economically secure aging.  Among these are government-assisted health insurance and pension plans, improved health infrastructure, and free annual check-ups and lifestyle evaluations.  Policy makers should aim for universal healthcare coverage, while basic labor protections should be extended to older informal workers, according to the report. By making mandatory retirement ages more flexible, helping older people stay healthy, and providing them with suitable work opportunities as well as lifelong learning and skills development, economies in the region can help older people stay productive longer. Read more: Developing Asian economies’ growth expected to be sustained at 4.9% this year and the next, ADB President says ahead of Annual Meeting

State Minister for Power, Energy and Minerals Resources Nasrul Hamid has sought the help of Asian Development Bank (ADB) to create a regional power market. “ADB can help create a marketplace in the region so that countries can trade electricity as per their necessity”, he told Takeo Konishi, the South Asia Director General of the ADB when he called on the state minister at his office in the ministry on Monday. Under the arrangement, countries can export electricity to Nepal and Bhutan during the winter season, he said. UCB taking steps to offer easy loans to agricultural entrepreneurs During the meeting they discussed various issues related to mutual interest. Welcoming the ADB Director General Nasrul Hamid said that the number of ADB-funded projects should be increased. He said Bangladesh has a plan to import 9000 MW of power. “We need a good consultant to advise us to set the actual price of energy in this regard and ADB can help us address this issue”, he said. Finance Minister affirms Bangladesh's economic resilience amid challenges The state minister noted that the government is giving importance to the participation of individuals and private organisations in optimising the use of resources beside the participation of the government. He noted that bonds are being issued to reduce the subsidy in the power sector. The government has taken initiative to convert some 13 lakh diesel-run pumps into solar pumps. He said that it will yield good results if they can work simultaneously for technological development and building a common computer data centre. ICMAB delegation takes part in pre-budget discussion with NBR The ADB director general discussed the issue of increasing private sector participation in the energy transition, electric vehicle, energy infrastructure and solar energy roadmaps for financing, regional interconnection and project readiness. It is notable that ADB has financed $2.57 billion in 7 projects in the power sector. In 2023, ADB approved two projects worth $360 million while 3 projects are under implementation and 5 remain as request for proposal in the energy sector. At this time, Asian Development Bank Country Director Ed Ginting (Edemon Ginting) was present.