Bangladesh has the potential to attract significant investment and generate millions of jobs by carrying out key reforms in four promising sectors -- green readymade garments (RMG), housing for the middle class, paint and dyes, and digital financial services, according to a new report by the World Bank Group.
As much as $670 million (around Tk 8,200 crore) from slow-moving World Bank-funded projects will be repurposed, with most of the funds going towards budget support as the government looks to navigate the narrow fiscal space amid a slowing economy.
These two financial agreements will help Bangladesh achieve green growth: WB country director
The high cost of servicing foreign debt has pushed many developing countries to borrow more money from multilateral institutions like the World Bank, stretching their finances
Bangladesh to utilise the fund to speed up reforms, stabilise reserves
He speaks at a discussion organised by the Finance Division in collaboration with the World Bank
The International Monetary Fund and World Bank annual meetings are scheduled to draw more than 10,000 people from finance ministries, central banks and civil society groups to discuss efforts to boost patchy global growth, deal with debt distress and finance the green energy transition
The government is expecting at least $5.65 billion in budget support this fiscal year from the World Bank, the International Monetary Fund (IMF), and the Asian Development Bank (ADB) to expedite reforms.
The meetings will take place in between October 21 and October 26
“We stand ready to redouble our support under our new country strategy and accelerated implementation of our large existing portfolio,” said Martin Raiser.
New World Bank President Ajay Banga says
Bangladesh and the World Bank today signed two financing agreements in this regard
The country has been seeing a worsening plastic waste problem over the last decade and a half, and recently, a small step has been taken towards possible mitigation.
Bangladesh will get $4.9 billion in loan from the World Bank for a dozen projects in the next fiscal year, given that those are ready on time for implementation as stipulated by the global lender.
Reforms following the IMF prescription should not harm disadvantaged groups
The more than seven years average project implementation period for Bangladesh between 2016 and 2021 presents a risk to the effective implementation of the next country partnership framework, said the World Bank in a report recently.
A wide gap in formal and informal exchange rate has been one of the factors behind the sharp fall in the foreign exchange reserves in Bangladesh as it shifts remittances from official channels to unofficial routes and impedes repatriation of export proceeds, said the World Bank.
The multilateral lender says in its latest regional economic update
Bangladesh must make optimal use of the funds to benefit the people.
