ADB to provide $1b as Bangladesh seeks to cushion Mideast war shocks
The Asian Development Bank has committed to providing Bangladesh with $1 billion in budgetary support to help cushion the economic impact of the ongoing Middle East conflict involving the United States, Israel and Iran. The funding is expected to be disbursed between May and June, according to officials from the Economic Relations Division.
The assurance was given during a recent meeting between ERD Secretary Shahriar Kader Siddiky and ADB Country Director Hoe Yun Jeong, who confirmed that the funds would be released under two existing programmes with an accelerated timeline due to current global conditions.
Officials say the conflict has triggered volatility in global energy markets, significantly affecting Bangladesh’s import-dependent economy. Rising prices of crude oil and liquefied natural gas (LNG), along with supply chain disruptions in the Gulf region, have increased import bills and intensified pressure on the country’s foreign exchange reserves and fiscal balance.
Of the total support, $750 million will be provided under the “Strengthening Economic Management and Governance Program – Subprogram 2,” an increase from the originally planned $500 million. An additional $250 million will come through the “Second Strengthening Social Resilience Program – Subprogram 2,” aimed at protecting vulnerable populations from economic shocks.
Last fiscal year, the ADB extended $1.5 billion to Bangladesh through multiple budget support initiatives. The latest assistance is expected to help stabilize macroeconomic conditions, support reform measures and ensure continued public spending on essential sectors during a period of heightened global uncertainty.
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