The Asian Development Bank (ADB) has embarked on a new country partnership strategy (CPS) for Bangladesh. The strategy is designed to augment competitiveness, employment, promote green growth, and climate resilience.
CPS for 2021–2025 will increase public and private investments in the next 5 years which will make Bangladesh realize its aspiration of becoming an upper middle-income country by 2031.
During this period, ADB will increase its lending operations to $10 billion–$12 billion, from $9.6 billion in the past 5 years.
ADB will further expand its private sector operations in Bangladesh and continue to leverage a high level of co-financing with other development partners. Improving the banking sector, the ease of doing business, business environment, and investment climate will help accelerate private sector development and promote economic diversification.
In the next 5 years, Bangladesh aims to reduce poverty from 20.5% to 15.6% and extreme poverty from 10.5% to 7.4% of its population.
Moreover, ADB has supported Bangladesh’s response against the Covid-19 pandemic with a $940 million loan for vaccine procurement under the Asia Pacific Vaccine Access Facility and other initiatives.
The new ADB strategy was prepared in close coordination with the government to support the implementation of its Eighth Five-Year Plan.
The government has requested $1 billion programmatic budget support for economic resilience and health and social protection, of which $250 million has been provided and the remainder is under preparation for approval in 2021–2023, said the ADB.