Japan to provide Bangladesh with USD 1.06 billion loan, confirms press secretary

Japan is providing Bangladesh with a loan of USD 1.06 billion. At the current exchange rate (approximately Tk 122 per dollar), the total amounts to around Tk 130 billion. This assistance includes budgetary support, funding for railway development projects, and grants for the education sector.

On Friday morning, Chief Adviser’s Press Secretary Shafiqul Alam shared a status on his Facebook page announcing the development. He stated that an agreement has been signed between Bangladesh and Japan regarding the loan. Chief Adviser Professor Muhammad Yunus is currently visiting Japan.

According to Shafiqul Alam, the USD 1.06 billion package includes budget support, railway infrastructure funding, and scholarship grants. Of the total amount, USD 410.8 million will be allocated for economic reforms and enhancing climate resilience. Another USD 641 million will be used to upgrade the Joydebpur–Ishwardi railway to a dual gauge, double-track line. Additionally, Japan will provide USD 4.2 million in scholarship assistance.

Japan is one of Bangladesh’s most significant development partners. Since independence, it has extended soft loans for infrastructure and technical projects. Bilaterally, Japan is Bangladesh’s largest development partner. In terms of total lending, it ranks third after the World Bank and the Asian Development Bank (ADB).

Japanese loans are known for their favourable terms, with low interest rates and long repayment periods of 30 to 40 years.

According to the Economic Relations Division (ERD), Japan disbursed USD 904.5 million in project assistance loans to Bangladesh in the first 10 months of the current fiscal year (July–April).