ADB backs Bangladesh transition with $2.57bn aid in 2025
2025 funding surge backs infrastructure, banking reform, climate resilience, and private sector growth during Bangladesh’s transition year
DHAKA, Bangladesh (MNTV) — The Asian Development Bank committed $2.57 billion in sovereign financing to Bangladesh in 2025, more than doubling its support from the previous year, as the country navigated political transition and economic pressure amid a challenging global environment.
ADB said the expanded funding was designed to support long-term development priorities rather than short-term relief. “We proudly reaffirm our commitment to supporting Bangladesh’s priorities during this significant transition period, which is further complicated by an increasingly challenging global landscape,” said ADB Country Director Hoe Yun Jeong.
Transport connectivity formed a central pillar of the 2025 program. ADB approved $688 million for the Chattogram–Dohazari railway upgrade, a flagship project aimed at modernizing a critical corridor and enabling direct rail services between Dhaka and Cox’s Bazar, easing congestion and supporting trade and tourism.
Institutional reform was another major focus. The bank committed $500 million to the first phase of its banking sector reform program, targeting regulation, corporate governance, asset quality, and financial stability — areas viewed as essential for restoring confidence and improving credit access for small and medium-sized enterprises.
Climate action was embedded across sectors rather than treated in isolation. ADB allocated $400 million to its Climate-Resilient Inclusive Development Program, supporting adaptation, emissions reduction in climate-critical sectors, and inclusive growth, alongside investments in energy, urban services, and water management.
Livelihood support and service improvements in Cox’s Bazar also featured prominently, reflecting the area’s development and environmental pressures. ADB said its 2025 lending structure was developed in close coordination with Bangladesh’s Economic Relations Division and other government agencies.
“The 2025 commitments underscore our enduring partnership with Bangladesh and shared focus… on economic diversification, enhanced infrastructure and services, and human development,” Hoe Yun Jeong said.
Beyond sovereign lending, ADB expanded non-sovereign support for private-sector activity in renewable energy, textiles, trade finance, food security, microfinance, and public-private partnerships. These efforts were complemented by $720 million in co-financing mobilized with other development partners.
By the end of 2025, ADB’s cumulative sovereign and non-sovereign commitments to Bangladesh exceeded $42 billion, with an active sovereign portfolio of 48 projects worth $10.8 billion.
As Bangladesh enters 2026, ADB has indicated future priorities will include economic corridors, multimodal logistics, capital market development, private sector growth, and digital transformation.
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