World Bank May Offer $2b Support to Bangladesh: Raiser

The World Bank is considering providing over $2 billion in support to Bangladesh during the current fiscal year (FY25), focusing on budget assistance and funding for key projects in sectors such as health, energy, and others.

Martin Raiser, the World Bank's Regional Vice President for South Asia, shared this after a meeting with the Finance Adviser to the interim government, Dr. Salehuddin Ahmed, at the Finance Division in the Bangladesh Secretariat on Thursday.

When asked about the potential fresh support, Martin mentioned that the final decision would rest with the World Bank's Board of Directors.

"I can’t make any official comment on their behalf, as they wouldn’t appreciate that. But I can say we’ve assessed the resources we can mobilize for Bangladesh from available IDA funds, and we’re considering a figure of a little over $2 billion for this fiscal year, which runs until June next year," he said.

He further added, "Whenever the projects we’re discussing are ready, we will mobilize the funds."

The World Bank Vice President confirmed that a portion of the amount would be allocated for budget support, while the rest would be directed towards important projects in the health and energy sectors, as well as other areas in need of funding.

Martin also highlighted that Bangladesh has existing projects with an undisbursed balance of $9 billion. "Many of these are crucial investments, and we might be able to reallocate some of this amount for more urgent needs," he noted.

He hinted that the overall support could potentially increase.

Martin acknowledged that this is a critical time for the country and stated that the Finance Adviser had briefed him on ongoing economic reforms in the banking sector and efforts to enhance revenue generation.

"We discussed how the World Bank could support these initiatives. We have been a long-standing partner of Bangladesh since the very beginning," he added.

He also emphasized that Bangladesh is one of the World Bank's closest and largest clients, saying, "We want to continue this excellent partnership."

Martin Raiser arrived in Dhaka on Wednesday for a two-day visit.