Published : 25 May 2026, 04:19 AM
Updated : 21 Aug 2026, 03:46 PM
Bangladesh has signed a $1.4 billion loan agreement with the Asian Development Bank (ADB) to finance four major projects, offering a crucial boost as development activities remain sluggish amid prolonged political and economic uncertainty.
The finance ministry said on Sunday the funds would support economic management, social protection and infrastructure development.
The agreements were signed between the Economic Relations Division (ERD) and the ADB at a hotel in Dhaka.
Finance Minister Amir Khosru Mahmud Chowdhury and ADB President Masato Kanda attended the event alongside senior officials.
The projects include the Strengthening Economic Management and Governance Programme (Subprogramme 2), Second Strengthening Social Resilience Programme (Subprogramme 2), SASEC Dhaka-Sylhet Corridor Road Project, and the Narayanganj Green and Resilient Urban Development Project.
Development implementation has remained largely stagnant for more than 18 months due to political instability and other pressures.
Fresh ERD data released Sunday showed foreign funding disbursement fell 18 percent year-on-year to $4.24 billion during July-April of the current fiscal year, down from $5.16 billion a year earlier.
Foreign loan commitments also plunged over 34 percent to $2.8 billion from $4.25 billion.
No new foreign loan commitments were secured in April.
Khosru said the ADB financing signalled improving confidence: “ADB’s swift and timely financial response amid the adverse situation created by the recent war in [West Asia] will play a vital role in implementing Bangladesh’s development plans,” he said.
He added that ADB President Kanda would meet Prime Minister Tarique Rahman on Monday, when a nationwide integrated development initiative would be announced.
