The Asian Infrastructure Investment Bank (AIIB) will give Bangladesh $700 million in financial support this fiscal year, according to officials from the Economic Relations Division (ERD).
Bangladesh asked for budget support during a meeting at the AIIB’s annual event in Uzbekistan from September 23-26. The AIIB president gave an initial promise of help.
Md Shahriar Kader Siddiky, the ERD Secretary, led Bangladesh’s team during the trip.
Out of the total, $300 million will be provided for reforms related to climate change and the environment, while $400 million will go towards emergency support for handling natural disasters.
Due to the current economic situation, ERD officials also said that Bangladesh has requested budget support from several development partners.
This includes $1 billion each from the World Bank and the Asian Development Bank (ADB) to pay off oil and gas import bills.
There’s some uncertainty about this support, but Bangladesh hopes to receive $750 million from the World Bank by December under a green development plan, and $400 million from the ADB during the same period to help with its transition from a least-developed country (LDC).
Bangladesh is also seeking $500 million from the ADB for banking reforms in fiscal year 2025, with the ADB promising $1.5 billion in total, spread over three payments, for these reforms.
In addition, Bangladesh has asked Japan for $1 billion in support this fiscal year. It expects to receive $100 million from South Korea and $100 million from the Opec Fund for International Development in fiscal year 2025.
A request for €200 million has been made to the European Investment Bank, though no response has been received yet.
During the Uzbekistan visit, Md Shahriar Kader Siddiky spoke to the AIIB president about Bangladesh’s focus on reforms to create a democratic, fair society, and asked for ongoing support from the AIIB in helping the country move forward.
