The Asian Development Bank (ADB) will provide Bangladesh with $5 billion in support over the next five years, the lender announced on Monday, as the country battles growing economic strain caused by global conflicts and domestic financial difficulties.
The funding package was unveiled during a visit to Dhaka by ADB President Masato Kanda and will back the Integrated Growth Network Development Initiative, a programme designed to improve connectivity, attract investment and encourage more balanced regional development.
Kanda held talks with Prime Minister Tarique Rahman and senior government officials on Bangladesh’s development priorities, economic reforms and external financing requirements.
The announcement comes as Bangladesh’s import-reliant economy struggles with the impact of the U.S.-Israeli conflict with Iran, which has driven up the costs of fuel, liquefied natural gas, fertiliser and shipping. Inflation remains high, while the country’s banking sector continues to face liquidity pressures.
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“Bangladesh is entering a critical new phase,” the Manila-based ADB quoted Kanda as saying. “ADB will support the country in maintaining stability, unlocking new growth opportunities, and building a more resilient and diversified economy.”
The support package, equivalent to about $1 billion annually, will form part of ADB’s sovereign financing programme for Bangladesh.
During the visit, the ADB also signed agreements worth about $1.4 billion in loans under its 2026 commitment programme, covering projects in energy, transport, climate resilience and social development.
In addition, the lender increased assistance by $250 million to help Bangladesh manage financing shortfalls linked to global commodity pressures and the Middle East crisis.
ADB also plans to raise its annual sovereign commitments to Bangladesh by 20% — from around $2 billion to $2.4 billion — to support investment-driven growth, economic diversification, governance reforms and the country’s transition from least-developed-country status.
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