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Published : 12 Dec 2024, 01:19 AM
The Asian Development Bank, or ADB, has approved a $600 million loan to support Bangladesh as it navigates a challenging period in revenue collection.
This loan will support efforts to improve domestic resource mobilisation, alongside other initiatives to strengthen the country’s economic framework.
On Wednesday, Govinda Bar, the team leader of external affairs at ADB's Bangladesh Resident Mission, shared details of the loan authorisation in a statement.
With a tax-to-GDP ratio of only 7.4 percent, the lowest in the world, Bangladesh is grappling with major hurdles in revenue collection.
This is referred to as “policy-based” lending, aimed at strengthening the country's domestic resource management, improving public investment efficiency, supporting structural reforms for private sector development, and enhancing transparency and good governance.
The loan programme includes initiatives for digitalisation, “green” projects, rationalising tax incentives, and boosting taxpayer morale.
One of the objectives is to enhance the transparency and efficiency of government investment projects through digitalisation.
The loan aims to simplify the country’s regulatory environment, promote private sector development, and encourage foreign direct investment by offering “equal benefits” for all.
To facilitate business operations, an integrated online platform has been created, which will offer over 130 services.
ADB Regional Lead Economist Aminur Rahman said, "Following the political shift in Bangladesh, ADB is supporting the country’s rapid development efforts with this loan.”
“Following the political shift in Bangladesh, ADB is committed to supporting the country’s rapid development through this loan.
He added, “The reform goals will focus on improving economic management, governance, and competitiveness.”
