ADB to provide $5b to Bangladesh over next five years

Asian Development Bank (ADB) President Masato Kanda met Prime Minister Tarique Rahman in Dhaka to discuss Bangladesh’s development priorities during a visit that highlighted funding announcements totalling $5 billion over five years.

ADB made the announcement in a statement published on its website on Monday.

“Bangladesh is entering a critical new phase,” said Kanda. “ADB will help the country protect hard-won stability, unlock new sources of growth, and build a more diversified and resilient economy that delivers better jobs and wider opportunity.”

During the visit, ADB signed about $1.4 billion in loans as part of the 2026 annual commitment program. ADB support was scaled up by $250 million to help address financing gaps linked to the economic impact of the Middle East conflict, which is adding pressure to Bangladesh’s economy, driving up the cost of fuel, liquefied natural gas, fertilizer, and shipping. These strains come as inflation remains high and the banking sector remains under stress.

ADB will work with the government and development partners to track the situation, bring in additional financing and private investment, and help Bangladesh build a more resilient economy through more diverse energy sources and exports, and stronger institutions.

ADB also intends to provide $5 billion over five years for the Integrated Growth Network Development Initiative. The Initiative, presented by Kanda during the visit, is designed to expand investment, create jobs, improve connectivity, and promote more balanced regional growth.

The five-year package is expected to amount to about $1 billion a year and will be strategically integrated into ADB’s enhanced annual sovereign commitment envelope for Bangladesh.

ADB plans to increase its annual sovereign commitments for Bangladesh by 20 per cent, from about $2.0 billion to about $2.4 billion over the medium term. The higher annual envelope will support Bangladesh’s development priorities, including investment-led growth, job creation, economic diversification, stronger governance, and a smooth transition from least developed country status.

ADB will also provide $2 million in technical assistance to support the preparation and implementation of Bangladesh’s medium-term development framework and align ADB’s forthcoming country partnership strategy with government priorities.

Kanda also met Finance and Planning Minister Amir Khosru Mahmud Chowdhury, with discussions focused on Bangladesh’s reform agenda, macroeconomic pressures, external financing needs, and ADB’s support for the government’s growth and resilience priorities.

Kanda met with key private sector leaders to discuss the opportunities and constraints shaping investment. ADB is also working with the government to mobilize additional private capital by deepening capital markets, preparing bankable projects, and attracting co-financing and private investment.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.