Staff reporter :
The reform initiatives undertaken by Bangladesh’s Interim Government, headed by Chief Adviser Dr Muhammad Yunus, have garnered significant support from international organisations, including USAID and the Asian Development Bank (ADB).
The interim administration has been focusing on economic reforms, export diversification, tax reform, and recovering illicit funds siphoned abroad.
On Sunday, a US delegation met with the government of Bangladesh to discuss these critical reforms. The discussions centred on potential support for the financial sector and cooperation in areas such as economic reforms and trade expansion.
The meeting emphasised both technical assistance and market exploration in key sectors.
Adviser to the Interim Government on the Ministries of Finance and Commerce, Dr Salehuddin Ahmed, briefed reporters after holding discussions with the six-member US delegation at the State Guest House Padma. Dr Ahmed remarked, “Our main discussions were with their Treasury Department and USAID.
It centred on financial reform and the cooperation that is needed in the financial sector. The second aspect was trade. We are looking for various technical assistance or market exploration in the trade sector.”
In line with its commitment to supporting Bangladesh’s inclusive economic growth, institutional building, and overall development, the United States has pledged an additional $202 million in aid. This financial support will contribute to ongoing reforms and economic progress.
The announcement came alongside the signing of the 6th amendment to The Development Objective Grant Agreement (DOAG) between Bangladesh and USAID. The ceremony, held at the State Guest House Padma, was attended by key officials from both sides.
The agreement was signed by Economic Relations Division (ERD) Additional Secretary AKM Shahabuddin and USAID Mission Director Reed J. Aeschliman, representing their respective governments.
This amendment follows a 2021 agreement in which USAID pledged a total of $954 million between 2021 and 2026. Of this amount, $425 million has already been disbursed through the first five amendments.
Under the 6th amendment, USAID will provide an additional $202.25 million, focusing on three critical areas: good governance, social and economic opportunities, and resilience. This funding is expected to enhance Bangladesh’s reform agenda by providing much-needed support in these areas.
ADB’S CONTINUED SUPPORT
In a separate development, Adviser to the Ministries of Finance and Commerce, Dr Salehuddin Ahmed, announced that the Asian Development Bank (ADB) would provide $400 million in budgetary support to Bangladesh by December 2024. Dr Ahmed shared this information with reporters following a meeting with Senior Adviser of ADB Edimon Ginting, ADB Country Director Hoe Yun Jeong, and Deputy Country Director Jiangbo Ning at the Bangladesh Secretariat.
“ADB has been our second-largest multilateral development partner after the World Bank, and we are grateful for their continued support over the years,” Dr Ahmed stated. He further elaborated that discussions during the meeting touched on reforms in the financial and revenue sectors, as well as the potential for further support in climate and environment-related projects, which he described as “very important for us.”
In addition to financial and environmental matters, the talks also covered trade and commerce, with Dr Ahmed indicating that further discussions would be held on Bangladesh’s specific needs. He expressed optimism that ADB, along with other multilateral and bilateral development partners, would continue their support in the coming days.
“In total, we are focusing on some short-term measures—reforms that are immediately deliverable to the people, which is our top priority. Alongside these, we have mid-term and long-term plans, and we are in the process of initiating these,” Dr Ahmed added.
REQUEST FOR ADDITIONAL BUDGETARY SUPPORT
Finance Ministry officials have confirmed that the government has formally requested $1 billion in budgetary support from the ADB for the energy and power sector. This request comes as Bangladesh continues to seek external assistance to stabilise its economy and strengthen critical sectors.
IMF MISSION TO VISIT DHAKA
Meanwhile, an International Monetary Fund (IMF) staff mission is scheduled to arrive in Dhaka on 24 September 2024 to discuss the possibility of providing an additional $3 billion in loans to Bangladesh. This follows the $4.7 billion loan granted to the country in January 2023. The discussions are expected to focus on Bangladesh’s ongoing economic reforms and the potential for further financial assistance from the IMF.