DHAKA, May 25 (Reuters) – The Asian Development Bank (ADB) will provide Bangladesh with $5 billion in support over the next five years, the lender said on Monday, as the country faces mounting economic pressure from global conflicts and domestic financial challenges.
The funding, announced during a visit to Dhaka by ADB President Masato Kanda, will support the Integrated Growth Network Development Initiative, which is aimed at improving connectivity, boosting investment and promoting more balanced regional development.
Kanda met Prime Minister Tarique Rahman and senior officials to discuss Bangladesh’s development priorities, economic reforms and external financing needs.
The announcement comes as Bangladesh’s import-dependent economy grapples with the fallout from the U.S.-Israeli war on Iran, which has pushed up prices of fuel, liquefied natural gas, fertiliser and shipping. Inflation remains elevated, while the banking sector faces ongoing liquidity stress.
“Bangladesh is entering a critical new phase,” the Manila-based ADB quoted Kanda as saying. “ADB will help the country protect stability, unlock new sources of growth and build a more diversified and resilient economy.”
The package will provide about $1 billion a year and will be integrated into ADB’s sovereign financing programme for Bangladesh.
During the visit, the ADB also signed agreements for about $1.4 billion in loans under its 2026 commitment programme, covering energy, transport, climate resilience and social development projects.
It also increased support by $250 million to help Bangladesh address financing gaps linked to global commodity pressures and the Middle East crisis.
ADB plans to raise its annual sovereign commitments to Bangladesh by 20%, from roughly $2 billion to $2.4 billion, to support investment-led growth, economic diversification, governance reforms and the country’s transition from least-developed-country status.
The lender said it is working with authorities to attract private investment by strengthening capital markets, preparing bankable projects and mobilising co-financing.
(Reporting by Ruma Paul; Editing by Thomas Derpinghaus)
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