Bangladesh needs $132b extra annually to stay on track for SDGs: Report

Bangladesh's progress in meeting the 17 Sustainable Development Goals (SDGs) is mixed, and the country needs to spend additional $132.59 billion annually until 2030 to achieve them, according to government and economic modelling data. 

Bangladesh has made strides in poverty reduction, hunger alleviation, clean energy, sanitation, and infrastructure, according to the third Voluntary National Review (VNR) 2025, prepared by the Planning Commission's General Economics Division (GED).

However, the report, presented last month at the UN's High-Level Political Forum on Sustainable Development, warns that progress on reducing inequalities, advancing gender equality, and building sustainable cities is "nearly off track". 

It partly attributes this stagnation to institutional weaknesses, poor governance, and compromised justice – issues the interim government says it is addressing through wide-ranging reforms.

$132b per year

On the financing front, the Draft SDG Need Assessment and Financing Strategy 2022, a report by the Economic Relations Division (ERD), estimates that total additional coordinated expenditure required between FY26 and FY30 amounts to $662.94 billion, averaging $132.59 billion per year. 

ERD data show that the largest share of this investment will be needed to achieve SDG-7 (affordable and clean energy), SDG-8 (decent work and economic growth), and SDG-9 (industry, innovation, and infrastructure), requiring a combined $387.82 billion.

Between FY26 and FY30, an average of $114.03 billion must be mobilised from domestic sources annually, with $18.56 billion from foreign sources and $15.31 billion targeted through foreign direct investment. 

The ERD report says 44% of the additional funding should come from the private sector, 33% from public funds, 6% from public-private partnerships, 14% from foreign sources, and 3% from NGOs.

The need for this additional financing was highlighted in a presentation on SDG funding. Last Thursday, Dhaka University Professor and South Asian Network on Economic Modeling (Sanem) Executive Director Selim Raihan gave a detailed presentation on the matter at a seminar on SDG financing.

Gains eroding in health and social indicators

The VNR 2025 highlights troubling reversals in several health metrics. While maternal and child mortality have declined overall, neonatal mortality remains stagnant, and maternal deaths in urban areas have risen alarmingly.

Non-communicable diseases now cause nearly 67% of all annual deaths, increasing from 21.6% in 2016 to 24% in 2023. Cardiovascular disease, diabetes, cancer, and chronic respiratory conditions are increasingly affecting the middle class and elderly populations.

The report also notes that 73% of total health spending comes directly from households – more than four times the global average of 17% and significantly higher than the 49.4% seen in lower middle-income countries.

Health worker density improved from 7.4 per 10,000 population in 2016 to 12.78 in 2023, but this remains far below the SDG target of 44.5. The physician-to-nurse-to-technologist ratio also falls well short of the 1:3:5 target.

Rising inequalities, gender gaps

The report says progress on gender equality (SDG-5) and reducing inequalities (SDG-10) is slow. Women remain disadvantaged in food security, property ownership, and decision-making, with only 40% receiving essential maternal health care.

Land ownership disparities are particularly stark, and Dalit women face both caste-based and gender-based discrimination. 

Income, opportunity, and service-access inequalities have widened, leaving many communities "left behind" despite overall poverty reduction. 

The poorest 40% of households still face extreme food insecurity at a rate of 40%, compared with the national average of 25%.

Youth exclusion is another concern, with 85% of disadvantaged young people outside employment, education, or training. Marginalised groups – including people with disabilities, climate-displaced families, ethnic minorities, and those without formal citizenship – face systemic barriers to services and legal recognition. 

In the Chittagong Hill Tracts, education and health infrastructure remain inadequate.

The VNR also reports a 48% gap between the most and least advantaged groups in access to energy, digital services, and financial inclusion.

Climate pressures intensifying

On climate action (SDG-13), the report acknowledges progress in disaster management but warns that coastal areas face worsening salinity, erosion, and biodiversity loss. More work is needed to safeguard marine resources (SDG-14) and terrestrial ecosystems (SDG-15).

Case studies of rural solar power, mobile health clinics, women-owned cooperatives, and ICT-based services are cited as promising sustainable models. 

However, the VNR cautions that scaling such successes nationally will require strong data systems, coordinated planning, and institutional reforms.

Stalled social gains

Speaking on the VNR findings in July, Planning Adviser Wahiduddin Mahmud said Bangladesh's social indicators improved rapidly from the 1990s to the early 2010s – often outpacing India – but have stagnated since 2012–13. 

He said much of this slowdown is due to weak local governance and the absence of democratic accountability, which he said undermined the work of social organisations and local bodies.

The report outlines a new roadmap prioritising institutional reform, constitutional and electoral changes, police and public administration restructuring, anti-corruption measures, and gender equality initiatives. Eleven reform commissions are now working on these areas.

Other pilot initiatives include recognising informal labour, expanding SME support, and introducing universal health care schemes. Investments are being made in climate-resilient water, health, and education infrastructure, alongside efforts to digitise services and empower local government for greater accountability.