Dhaka, Bangladesh (BBN) - Bangladesh could receive $2 billion in support during the current fiscal year from the World Bank, today announced Martin Raiser, Vice President for South Asia at the World Bank.
This financial assistance would be allocated for both budget support and specific project funding, Raiser said after a meeting with Finance Adviser Salehuddin Ahmed in Dhaka.
The support is intended to cover Bangladesh's needs for the 2024-2025 fiscal year.
"The final decision on the loan is made during the World Bank's board meeting. However, the possibility of providing $2 billion in assistance for the current fiscal year is being examined," said Raiser.
A part of the estimated amount will be given as budget support while the rest will be allocated to various important projects in the health and energy sectors, he added.
“Additionally, further support will be provided for other projects based on the needs of the Bangladesh government," Raiser revealed.
He also mentioned that they are exploring what can be done from the International Development Association (IDA) fund of the World Bank.
During his visit, Raiser reaffirmed the institution's support for Bangladesh, focusing on areas such as banking sector reforms, structural changes to boost private investment, and resilience against climate change.
He is scheduled to meet with senior government officials, including the Bangladesh Bank governor to discuss ongoing projects and strategies to help Bangladesh navigate global uncertainties.
After the meeting when asked, Finance Advisor Salehuddin Ahmed delve into a range of critical issues during discussions with the World Bank.
The conversations covered various aspects of economic and developmental assistance, starting with budget support, which is crucial for bolstering the country's fiscal stability and maintaining the momentum of key projects.
Health and energy sectors were high on the agenda, as they are essential for fostering long-term growth and ensuring sustainable development.
The dialogue on energy focused on addressing the country's growing demand for power, exploring renewable energy options, and finding solutions for the energy shortfall that hampers industrial and economic progress.
Meanwhile, discussions on the health sector aimed at improving healthcare infrastructure, expanding access to medical services, and addressing public health challenges exacerbated by recent global and regional crises.
The World Bank's role in facilitating fertilizer imports was also a significant point of focus, as Bangladesh relies heavily on these imports to support its agricultural sector.
The import of fertilizers is critical for ensuring food security, especially as the government seeks to achieve greater self-sufficiency in food production.
Strengthening agricultural productivity and reducing dependency on foreign imports are key components of the nation's broader strategy for economic resilience.
Furthermore, post-flood rehabilitation efforts were discussed at length. With floods causing widespread damage to homes, infrastructure, and farmlands, the country is in dire need of assistance to rebuild and restore affected regions.
Lastly, the Rohingya crisis, which remains one of the most pressing humanitarian challenges for Bangladesh, was also brought to the table.
The ongoing influx of refugees has placed significant strain on the country’s resources, especially in the areas of housing, healthcare, and social services.
The adviser highlighted the need for continued international support to manage this crisis while working towards durable solutions that ensure both the safety and dignity of the displaced population.
The engagement with the World Bank reflects the government’s proactive approach to securing the necessary support for the country's growth and development.
He mentioned that the World Bank has been very positive about these matters and that the areas for support are now quite clear.
The World Bank however will also coordinate with other organizations to fulfill the need of Bangladesh, the adviser said.
Furthermore, the adviser added that the reforms Bangladesh has undertaken seem credible to the World Bank.
Abdoulaye Seck, the World Bank's country director for Bangladesh, also attended the meeting.
Seck oversees the World Bank's operations and strategic engagements in Bangladesh, working to promote sustainable development, reduce poverty, and support economic growth through various projects and initiatives.
He is responsible for managing the World Bank's financial assistance, technical expertise and policy advice to help address the developmental challenges facing Bangladesh.
Martin Raiser arrived in Dhaka on a two-day visit on September 18 to strengthen the partnership between the World Bank and the country.
He is also set to meet with Chief Adviser of the Interim Government Dr Muhammad Yunus during his stay in Bangladesh.
BBN/AN/TA