Bangladesh has been elected an executive director of the Board of Islamic Development Bank (IsDB) replacing Pakistan.

The IsDB's Board of Executive Directors is currently composed of 18 members and since 2020 Pakistan had been representing a group consisting of Bangladesh, Afghanistan, Pakistan, and Maldives.

Pakistan wanted to serve the board for another term, but Bangladesh refused and argued against the proposal and after 'intense negotiations' got elected as a member of the Board of Executive Directors.

Bangladesh's appointment will be effective for the next three years from 2024, according to a press release from the Economic Relations Division (ERD).

The decision came in favour of Bangladesh from the annual meeting of IsDB for 2023 held at Jeddah in the Kingdom of Saudi Arabia from May 10-13.

The Bangladesh delegation, headed by ERD Secretary Sharifa Khan, argued against Pakistan's proposal citing the Article 31(3), which clearly mentions that the elected member country will serve for three years and then rotate in alphabetical order, according to the press release.

"After intense negotiations, eventually Bangladesh was elected as the Executive Director of IsDB Board," read the release.

In addition, in the annual meeting, the International Islamic Trade Finance Corporation (ITFC), a sister concern of IsDB, celebrated 15 years of partnership and awarded Bangladesh with the "Largest Financing Partner" Award in recognition of Bangladesh's regular borrowing from ITFC to purchase fuel from the global market and repay debts on time without any failure.

The IsDB Board of Governors also approved a €270 million [Euro] loan for the Rural and Peri-Urban Housing Finance project.