Bangladesh inks JICA pacts for reform and capacity building

Bangladesh and the Japan International Cooperation Agency (JICA) have signed two key agreements in Tokyo aimed at advancing economic reforms, enhancing climate resilience, and expanding higher education opportunities for public officials.

The agreements were signed today (May 30) in the Japanese capital by JICA President Dr Tanaka Akihiko and Bangladesh's Ambassador to Japan, Md. Daud Ali. The two sides signed the Development Policy Loan for Economic Reform and Climate Resilience, as well as the Grant Agreement for the 2025 Japan Development Scholarship (JDS) Scholarship. Chief Adviser to the interim government, Dr Muhammad Yunus, who is currently on an official visit to Japan, was present at the ceremony.

Before the signing of the agreement, the two governments exchanged Notes (E/N) outlining the framework of cooperation. The documents were signed by the Japanese Ambassador to Bangladesh, Iwama Kiminori, and the Bangladeshi Ambassador to Japan, Md Daud Ali.

In the face of global challenges, including inflation stemming from the Ukraine crisis and an increased frequency of natural disasters due to climate change, Bangladesh is seeking international support for stability and sustainable growth. The policy-based loan will provide essential budgetary support for the government to implement its pledged reforms in economic policy and climate resilience.

The programme, valued at JPY 60 billion (approximately USD 422 million), will assist the Government of Bangladesh in executing necessary policy actions in line with jointly agreed frameworks. It is expected to drive structural reforms in key public institutions, thereby improving the business environment and fostering industrial growth. Strengthening local governance and public financial management are also core focuses.

The initiative will enhance national capacity to respond to climate challenges through improved planning and implementation. Some components of this programme will be co-financed with support from the Asian Development Bank (ADB) and the World Bank, with ADB contributing to economic reform and the World Bank focusing on climate resilience.

Meanwhile, under the JDS Scholarship (Japanese Grant Aid for Human Resource Development Scholarship) programme, 33 young Bangladeshi public officials will receive scholarships to pursue Master's and PhD degrees at leading Japanese universities. The programme, funded through a JPY 606 million (approx. USD 4.22 million) grant, aims to build a future cadre of policymakers capable of driving Bangladesh's socio-economic development. Of the 33 recipients, 30 will pursue Master's degrees, and three will undertake PhD-level studies.

Since 2002, a total of 591 Bangladeshi government officials have received the JDS scholarship. Beyond academic advancement, the programme also offers scholars cultural exposure to Japan's heritage, cuisine, and environment.

Dr Muhammad Yunus was present throughout the signing events in Tokyo, underscoring the significance of the partnership in Bangladesh's journey towards sustainable development.