ADB president meets PM Tarique, says it intends to provide $5b over five years

Asian Development Bank President Masato Kanda has met Prime Minister Tarique Rahman in Dhaka to discuss Bangladesh's development priorities during a visit that highlighted funding announcements totalling $5 billion.

The ADB said it intends to provide $5 billion over five years for the Integrated Growth Network Development Initiative, presented by Kanda during the visit.

Bangladesh is entering a critical new phase, he said, adding that the 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, according to a press release issued today (25 May).

During the visit, the lender signed about $1.4 billion in loans as part of the 2026 annual commitment programme.

The ADB's 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 on Bangladesh's economy and driving up the cost of fuel, liquefied natural gas, fertiliser and shipping, the regional lender said.

"These strains come as inflation remains high and the banking sector remains under stress," it said, adding that the 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, exports and stronger institutions. 

The ADB said the Integrated Growth Network Development Initiative 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 the ADB's enhanced annual sovereign commitment envelope for Bangladesh.

The ADB said it plans to increase its annual sovereign commitments for Bangladesh by 20%, from about $2 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. 

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

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

The ADB president met key private sector leaders to discuss the opportunities and constraints shaping investment. 

The lender said it is also working with the government to mobilise additional private capital by deepening capital markets, preparing bankable projects and attracting cofinancing and private investment.