ADB approves $600m for Bangladesh in immediate development loans

“ADB’s PBL promptly responds to Bangladesh’s immediate development financing needs following the political transition,” said Aminur Rahman, ADB regional lead economist.

“The reforms target improvements in economic management, governance, and economic competitiveness.”

The program, developed in collaboration with the IMF, World Bank, and other partners, comes as Bangladesh grapples with a low tax-to-GDP ratio of 7.4 percent, the world’s lowest.

Key measures include digitalisation of tax systems, rationalisation of tax incentives, and initiatives to boost taxpayer morale.

Additionally, the loan aims to streamline business regulations, enhance foreign direct investment approval processes, and improve the performance of state-owned enterprises. Over 130 services have been integrated into a digital platform to simplify operations.

The program also prioritises logistics sector reforms to lower trade costs and diversify exports, reinforcing Bangladesh’s economic resilience and competitiveness.