Japan has become Bangladesh’s leading development partner, providing $1.66 billion in aid during the first ten months of FY 2023-24. This is the highest among foreign financiers, surpassing the World Bank ($1.05 billion) and the Asian Development Bank (ADB) ($1.499 billion). Last fiscal year, Japan disbursed $1.94 billion, compared to ADB’s $1.787 billion and the World Bank’s $1.898 billion.
Japan is funding major projects in Bangladesh, including MRT lines, the Jamuna rail bridge, and the Hazrat Shahjalal Airport terminal. The Japan International Cooperation Agency (JICA) has committed significant amounts: $2.1 billion for MRT-06, $979.8 million for MRT-05, and $1.10 billion for MRT-01.
Historically, Japan’s aid has steadily increased, reaching a record $2.314 billion in FY 2022. Since FY 2018, Japan’s annual disbursements have been consistently high, positioning it as the largest bilateral donor to Bangladesh. Japan has provided a total of $31.84 billion since 1971, with favorable loan terms including low interest rates (around 1.30% for construction) and a 30-year repayment period.
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