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Dhaka: Bangladesh said on Tuesday the World Bank has committed to providing over $2 billion in new financing this fiscal year to support the country's ongoing reform efforts, flood response initiatives, and improvements in air quality and healthcare.
The announcement was made by the World Bank's Country Director, Abdoulaye Seck, following a meeting with the head of the interim government Nobel laureate Muhammad Yunus in Dhaka on Tuesday, his office said in a statement.
"We would like to support you as fast as possible and as much as possible," Yunus' office quoted Seck as saying, underscoring the bank's commitment to addressing Bangladesh's financial needs as it embarks on critical reforms under the interim government, formed last month following the ousting of Prime Minister Sheikh Hasina after deadly protests.
The World Bank also plans to repurpose an additional $1 billion from existing programmes, which will raise the total amount of soft loans and grants to approximately $3 billion for this fiscal year that ends in June 2025.
The funds will be used to support a variety of key areas, including the country's response to natural disasters and economic reforms.
Seck highlighted the importance of the reforms for Bangladesh's future, particularly for its youth, with two million people joining the job market each year. "The completion of the reforms will be critically important for Bangladesh and its young people," he said.
During the meeting, Yunus urged the World Bank to provide the necessary flexibility and support for the country's reform initiatives.
"We need a big push, and we have to focus on the dreams of the students."
In a televised address last week, Yunus said the government was appealing for $5 billion in aid to help stabilise an economy that has been struggling since the Ukraine war sharply increased the cost of fuel and food imports. Bangladesh last year sought a $4.7 billion bailout from the International Monetary Fund.
The United States is committed to supporting Bangladesh's inclusive economic growth, institution building and development and will provide an additional $202 million of aid, a U.S. delegation said during a visit to Dhaka on Sunday.