by 
Dhaka, June 21, 2025 – The World Bank has approved a $500 million financial aid package to bolster public trust in Bangladesh’s government institutions and strengthen governance and stability in the financial sector. According to a press release from the World Bank, the decision was made during a board meeting at its headquarters in Washington, D.C., on Saturday, June 21. The amount, equivalent to over BDT 6,000 crore at current market rates, marks a significant step in supporting Bangladesh’s economic reforms.
This latest funding brings the World Bank’s total new commitments to Bangladesh for the 2024-25 fiscal year to $3.07 billion. Gail Martin, the interim Country Director for the World Bank in Bangladesh, emphasized the importance of improving public financial management for sustainable growth. “The government is taking bold steps to make its institutions more transparent and accountable, enabling them to serve the public more effectively,” Martin said. She added that the funding will support policy and regulatory reforms to foster an inclusive and resilient economy, benefiting all citizens.
The World Bank has been a key development partner for Bangladesh since its independence, providing over $46 billion in grants and low-interest loans. This new package follows another recent approval aimed at supporting the government’s reform initiatives.
In addition, the Asian Development Bank (ADB) approved $500 million in budget support last Thursday. Together, the World Bank and ADB funds, totaling approximately $1 billion, are expected to be disbursed to Bangladesh before June 30. Furthermore, the International Monetary Fund (IMF) may approve two loan tranches worth $1.3 billion during its board meeting on Monday, June 23, with the funds likely to be released within two weeks of approval.
AI/MR
