In a significant development today, September 17, the World Bank announced its intention to mobilize approximately $2 billion in new financing for Bangladesh within the current fiscal year. This substantial financial support aims to bolster critical reforms, enhance flood response, improve air quality, and strengthen the health sector.
During a meeting with Chief Adviser Dr. Muhammad Yunus at the State Guest House Jamuna in Dhaka, the World Bank’s Country Director, Abdoulaye Seck, affirmed the institution’s commitment to increasing its lending to Bangladesh. Seck emphasized the bank’s dedication to expediting support for the Interim Government’s reform agenda. “We are committed to assisting as swiftly and extensively as possible,” Seck stated, underscoring the bank’s focus on addressing the country’s pressing financial needs.
In addition to the new commitments, Seck revealed that the World Bank plans to reallocate approximately $1 billion from existing programs, following consultations with the Bangladeshi government. This move is in response to appeals from Chief Adviser Yunus to international development partners for enhanced support. The repurposing of these funds, combined with the new financing, is expected to elevate the total financial assistance to Bangladesh this fiscal year to around $3 billion.
Seck highlighted that the successful implementation of the proposed reforms is crucial for Bangladesh’s future, particularly for the nation’s youth, with approximately two million individuals entering the job market annually. Chief Adviser Yunus expressed the need for the World Bank’s flexibility in funding reforms and assisting in a new era of governance after 15 years of what he described as “extreme misgovernance.”
Yunus emphasized the necessity for a significant push to rebuild and create new structures from the current challenges. “We need your support to help us build anew and focus on the aspirations of our students,” he urged, calling on the World Bank to be a collaborative partner in this transformative journey.