The Asian Development Bank (ADB) has approved a $143 million loan package to support the government of Bangladesh's efforts to accelerate growth by improving efficiency, predictability, and security of cross-border trade.

Bangladesh has been carrying out trade facilitation strategies to enhance export diversification and competitiveness by improving the quality of exports, signing bilateral trade and investment cooperation agreements and promoting trade through better coordination among border agencies and private stakeholders.

"ADB's assistance supports the government's goal of accelerating economic growth through industrialization and trade," said ADB Principal Economist Tadateru Hayashi.

"The programme will help diversify the country's export products and destinations. Improved connectivity will facilitate subregional trade and commerce among the South Asia subregional economic cooperation countries."

The ADB loan package includes a $90 million policy-based loan, which will support reforms in areas including bringing the country's customs legal frameworks in compliance with international standards, the Manila-based lender said in a statement.

The reforms will also improve cargo clearance processes and strengthen the capacity of the National Board of Revenue (NBR) and the commerce ministry, it added.

To complement the policy reforms, a $53 million project loan will construct integrated land customs stations and land ports of NBR and the Bangladesh Land Port Authority (BLPA) at Akhaura, Sonamasjid, and Tamabil border crossing points (BCPs).

Facilities and equipment for customs clearance and cargo transhipment operations will also be installed. 

ADB will provide a $1.5 million technical assistance grant from its Technical Assistance Special Fund to support the modernisation of the customs legal framework and coordination among the border agencies.

The grant will also help in preparation of an operationalisation plan of central customs facilities, strengthen NBR's capacity to implement modernised customs operations at BCPs, and build the project implementation capacity of NBR and BLPA.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.