Tuesday, 06 January 2026

South Asian Update
South Asian Update

Economy

ADB commits Bangladesh support with $2.57b financing in 2025

 Published: 15:29, 5 January 2026

ADB commits Bangladesh support with $2.57b financing in 2025

The Asian Development Bank has committed $2.57 billion in new sovereign financing for Bangladesh in 2025, marking a sharp increase from the $1.18 billion approved last year.

According to the ADB, the financing will support ten major projects spanning energy, transport, banking reforms, urban services, climate resilience, small and medium-sized enterprises, and livelihood improvement in Cox’s Bazar. The lending programme reflects a balanced sectoral approach, with infrastructure and institutional reform at its core.
ADB Country Director for Bangladesh Hoe Yun Jeong said the increased commitment underlined the bank’s long-term partnership with Dhaka amid global economic uncertainty. He noted that the focus remains on economic diversification, better infrastructure and services, and human development, in coordination with the Economic Relations Division and line ministries.
Transport projects account for about 35% of the total allocation, followed by finance sector reforms at 23% and public sector management and governance at 16%. Energy, water and urban development, and social sectors also received significant shares.
Flagship projects include funding for the Chattogram–Dohazari railway upgrade to improve connectivity with Cox’s Bazar, banking sector stabilisation to strengthen financial oversight, and climate-resilient development to cut emissions and protect vulnerable communities.
In addition to sovereign lending, ADB extended private sector support and mobilised $720 million in co-financing with development partners. By the end of 2025, ADB’s total commitments to Bangladesh exceeded $42 billion, reinforcing its role as a key development partner.

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