ADB lends $250m to strengthen social safety net
The Asian Development Bank (ADB) has approved a $250 million loan to help reform and modernise Bangladesh's social protection system.
The funding supports Subprogramme 2 of the Second Strengthening Social Resilience Programme, which aims to bolster social protection and reduce vulnerability and poverty risks.
The programme focuses on broadening protection for vulnerable populations.
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'This programme represents a significant milestone in Bangladesh's transition towards a more modern, inclusive, and resilient social protection system,' said Hoe Yun Jeong, ADB country director for Bangladesh.
'By expanding coverage for vulnerable groups, particularly women, and introducing contributory protection mechanisms, these reforms will help reduce poverty risks and support long-term economic stability,' he added.
'ADB is proud to partner with Bangladesh in building a system that is more efficient, adaptive, and better equipped to foster inclusive growth and shared prosperity,' Jeong said.
Reforms include the development of contributory social protection schemes, expected to ease long-term fiscal pressure.
The widow allowance programme will provide financial assistance to at least 250,000 additional vulnerable women. At the same time, adaptive social protection will be strengthened through measures that provide more practical support to people affected by climate-related shocks.
In addition, the programme will help women entrepreneurs more easily access loans and credit, aiming to increase their participation in the economy by at least 15% through Bangladesh Bank's targeted refinancing scheme.
These initiatives are expected to help more people find stable jobs, especially women, thereby increasing incomes and reducing poverty. By supporting greater workforce participation and improved social protection, the programme will contribute to stronger, more inclusive economic growth in Bangladesh.
