ADB okays $250m loan for social protection system
The Asian Development Bank has approved a $250 million loan to support Bangladesh in implementing key reforms aimed at improving the efficiency, coverage and effectiveness of its social protection system.
The funding comes under Subprogram 2 of the Second Strengthening Social Resilience Programme, which focuses on enhancing both protective and preventive social safety measures to reduce poverty, vulnerability and social exclusion.
ADB Country Director Hoe Yun Jeong described the initiative as a major step toward building a more modern, inclusive and resilient welfare system. He noted that expanding coverage—particularly for women—and introducing contributory protection schemes would help reduce poverty risks and support long-term economic stability.
The reform package includes plans to introduce contributory social protection schemes to ease fiscal pressure over time. It also aims to expand the widow allowance programme to reach at least 250,000 additional vulnerable women.
Climate-responsive measures will be integrated into social protection through adaptive programmes, including workfare initiatives designed to support communities affected by environmental risks.
Additionally, access to finance for women entrepreneurs is expected to increase by at least 15 percent through targeted refinancing schemes by Bangladesh Bank.
The initiatives are projected to boost productivity, increase female labour force participation, and accelerate poverty reduction—contributing to broader economic stability and inclusive growth.
