World Bank Pledges Additional $2 Billion To Boost Reform Efforts In Bangladesh

The World Bank on Tuesday said that it could mobilise an additional $2 billion in financing to Bangladesh in this fiscal year to support critical reforms, flood response, better air quality and health.

World Bank Country Director Abdoulaye Seck pledged the new assistance when he called on interim government's Chief Adviser Muhammad Yunus at the State Guest House Jamuna in Dhaka on Tuesday.

Seck said that the World Bank "is committed to increasing lending to Bangladesh in this fiscal year to help the reform agenda of the Interim Government," the chief adviser posted on X.

"Seck informed that the World Bank can mobilise about $2 billion new financing in this fiscal year to support critical reforms, flood response, better air quality and health," Yunus said in another post on X.

Seck's remarks came days after the US Agency for International Development (USAID)-Bangladesh on Sunday said it would provide $202.25 million in aid to Bangladesh to advance development, empower youth, strengthen democracy, improve health and expand trade and economic opportunities to people in the South Asian country.

Seck's meeting with Yunus came over a month after Yunus, known for his deep relations with Washington, was installed Bangladesh's Chief Advisor following the resignation of Sheikh Hasina who fled the country on August 5 amidst student-led mass protests.

"We would like to support you as fast as possible and as much as possible," Seck was quoted as saying by the state-owned BSS news agency.

He added that the bank would support the critical financial needs of the country.

In addition to the new commitments, he said, the global lender would repurpose about an extra $1 billion from its existing programmes in consultation with the government in response to the calls for support by the Chief Adviser to all development partners of Bangladesh, the news agency reported.

Seck said the extra lending would raise the amount of soft loans and grants the World Bank would be giving to Bangladesh this fiscal to about $3 billion once the funds from the existing projects are repurposed.

He said the completion of the reforms would be 'critically important' for Bangladesh and its young people, including the two million people who are joining the job market every year.

During the meeting, Yunus told the World Bank official that the bank must have flexibility to fund Bangladesh's reforms and help restart a new journey after 15 years of 'extreme misgovernance.'

"Out of these ashes, we have to build new structures. We need a big push, and we have to focus on the dreams of the students," he said.

"I will suggest, help us. Be a part of our team," said the Chief Adviser.

Yunus asked the World Bank to lend its technical support to recover billions of dollars of stolen assets siphoned off from Bangladesh by corrupt individuals during Hasina's 15-year-long rule.

"You have the tech to bring back stolen assets," he said, adding Bangladesh would also need the bank's expertise to build 'a zero-corruption Bangladesh'.

The World Bank country chief agreed to help Bangladesh bring back the stolen money. "We are happy to help you," Seck said.

He said the global lender would also like to help Bangladesh with data transparency, data integrity, digitalisation of tax collection, and financial sector reforms.

Yunus said Bangladesh cannot afford to lose this once-in-a-lifetime opportunity to fix its institutions and undertake major reforms.

"Once we lose it, it will never come back," he said.