ADB has approved USD 600 million policy-based loan to support the Government of Bangladesh in carrying on with their key structural reforms. The loan aims to help the Bangladesh Government in mobilizing domestic resources, improving public investment efficiency, building the private sector, reform state-owned enterprises, and enhance transparency and good governance.
"This loan addresses Bangladesh's immediate development financing needs in the aftermath of the political transition," commented ADB's Regional Lead Economist Aminur Rahman. He added that the lending program was built with the advice and programming of partners such as the International Monetary Fund (IMF), World Bank, and co.
According to the ADB, Bangladesh has been facing difficulties in the mobilization of resources because of one of the world's lowest tax-GDP ratios. The bank is confident that this loan will assist the country to implement crucial policy reforms and institutional reforms; besides, the loan aims at comprehensive reform in the logistics sector, reducing trade costs and promoting export diversification, which is in every respect necessary for long-term economic growth in the country.