ADB okays $400m for BD’s economic recovery

Staff Reporter :
The Asian Development Bank (ADB) has approved $400 million loan to Bangladesh for advancing reforms in domestic resource mobilization, improve efficiency and productivity of public spending, and help small businesses, the Manila-based lender said in a statement on Tuesday.
The credit will support Bangladesh’s economic recovery by bolstering revenue generation and facilitating efficient public spending.
The loan will also help small businesses, especially women-led businesses, to access low-cost innovative bank financing. This loan is ADB’s second subprogram of the ”Sustainable Economic Recovery Program” that was launched

in October 2021 to support economic recovery after the COVID-19 pandemic.
“This subprogram enables Bangladesh to enhance revenues, promote efficiency and transparency in public spending and public procurement, deepen the reforms of state-owned enterprises, and help small businesses and micro entrepreneurs to access low-interest affordable credits from the banking sector,” said ADB Principal Public Management Economist for South Asia Aminur Rahman.
Under this program, ADB enhances income tax collection through the adoption of the new Income Tax Act, reduce tax loopholes, strengthen compliance and enforcement measures, and broaden the country’s tax net, the ADB said in a statement.
The new package also facilitates bank lending to marginalized and landless farmers, small traders, low-income earners, women entrepreneurs through innovative financing services like using digital channels and e-wallet.
Promoting gender equality and social inclusion and addressing the climate change agenda in public investment and national budgeting are some of the key activities of this credit support.
Meanwhile, ADB is a key source of external assistance for Bangladesh, providing $2 billion on average every year since 2016. ADB’s assistance is aligned with the country’s Eighth Five-Year Plan, 2021-2025 and the Perspective Plan, 2021-2041.