Photo courtesy of Anadolu
The Asian Development Bank (ADB) has announced financing of $5 billion over the next five years to expand investment, create more employment, and encourage balanced regional growth.
The new announcement was made as ADB President Masato Kanda met with Bangladesh Prime Minister Tarique Rahman in Dhaka on Monday to discuss the country’s development priorities, said ADB in a statement.
“ADB intends to provide $5 billion over five years for the Integrated Growth Network Development Initiative,” it added, saying that the initiative was presented by Kanda during the visit, which is designed to expand investment, create jobs, improve connectivity, and promote more balanced regional growth.
The five-year package is expected to amount to about $1 billion a year and will be strategically integrated into ADB’s enhanced annual sovereign commitment envelope for Bangladesh.
Furthermore, ADB plans to increase its annual sovereign commitments for Bangladesh by 20%, from about $2.0 billion to about $2.4 billion over the medium term.
“Bangladesh is entering a critical new phase,” said Kanda. “ADB will help the country protect hard-won stability, unlock new sources of growth, and build a more diversified and resilient economy that delivers better jobs and wider opportunity.”
$1.4B loan signed
During the ADB president’s visit, the bank also signed about $1.4 billion in loans as part of the 2026 annual commitment program.
ADB support was scaled up by $250 million to help address financing gaps linked to the economic impact of the Middle East conflict, which is adding pressure to Bangladesh’s economy, driving up the cost of fuel, liquefied natural gas, fertilizer, and shipping, said ADB.
These strains came as inflation remains high and the banking sector remains under stress in the South Asian country.
ADB will also provide $2 million in technical assistance to support the preparation and implementation of Bangladesh’s medium-term development framework and align ADB’s forthcoming country partnership strategy with government priorities.
Kanda also met Finance and Planning Minister Amir Khosru Mahmud Chowdhury and key private sector leaders to discuss Bangladesh’s reform agenda, macroeconomic pressures, and external financing needs.