WB pledges US$ 2 billion in new support to Bangladesh

The World Bank has committed to increasing its financial support to Bangladesh in the current fiscal year, offering up to $2 billion to aid the Interim Government's reform efforts, World Bank Country Director Abdoulaye Seck announced today.

Seck noted that the World Bank's new financing will be directed towards crucial reforms, flood response, improved air quality, and healthcare.

The announcement came during a meeting with Chief Adviser Professor Dr Muhammad Yunus at the State Guest House Jamuna in Dhaka.

"We are eager to provide support as quickly and effectively as possible," Seck said, emphasising that the World Bank is ready to address Bangladesh's pressing financial needs.

In addition to the new funding, Seck revealed that the World Bank plans to reallocate an additional $1 billion from its existing programmes in collaboration with the Bangladeshi government, responding to Prof Yunus' appeal to all development partners for increased assistance.

This extra funding will raise the total World Bank assistance to Bangladesh to approximately $3 billion for the fiscal year, including soft loans and grants, once the existing projects are repurposed.

Seck underscored the importance of completing these reforms, highlighting their impact on Bangladesh’s economy and the millions of young people entering the job market annually.

During the meeting, Chief Adviser Prof Yunus stressed the need for flexibility in the World Bank’s approach to funding Bangladesh’s reforms, as the country embarks on a new chapter after 15 years of "severe misgovernance."

"Out of these ashes, we must build new structures. We need a significant push, focusing on the dreams of our students," he said.

Prof Yunus called on the World Bank to assist in recovering billions of dollars in stolen assets, allegedly siphoned off from Bangladesh during Sheikh Hasina's 15-year rule. He urged the World Bank to lend its technical expertise to combat corruption and build a "zero-corruption Bangladesh."

Seck expressed willingness to help Bangladesh recover the stolen assets. "We are happy to assist you," he said.

The World Bank also pledged to support initiatives related to data transparency, digital tax collection, and financial sector reforms.

Prof Yunus emphasised that Bangladesh cannot afford to miss this "once in a lifetime opportunity" to reform its institutions and governance. "If we let this chance slip away, it may never return," he warned.

Seck conveyed his condolences for the martyrs of the July-August student-led uprising and expressed admiration for the graffiti and murals painted by young people on the walls of Dhaka. "In my 30 years of work, I’ve never seen anything like it," he said.

"We need to empower this generation," Seck concluded.