WB agrees to provide budget support to Bangladesh, says Salehuddin

The World Bank (WB) has agreed to provide budget support to Bangladesh to address its economic challenges, largely stemming from declining foreign exchange reserves, Finance and Commerce Adviser Salehuddin Ahmed said today.

"They are quite positive. More discussions will take place," he said after a meeting with a WB delegation led by Mathew A Verghis, regional director for the South Asia region of WB, at his office. 

Responding to a question about loan conditions, Ahmed said he requested the WB delegation to provide "action plans" that are feasible for implementation.

The meeting followed the interim government's request for $1 billion from the WB earlier this month for the energy and power sector, and another $1 billion for the banking sector reforms, and is part of a broader effort to secure $8 billion from multilateral lenders and development partners to replenish the country's foreign exchange reserves and stabilise the economy.

Ahmed did not disclose a specific amount but mentioned that the government expects budget support this year, with another tranche anticipated early next year.

"We need budget support immediately, and the discussions also covered the implementation of reforms," he said. 

Last week, a finance ministry official said the Asian Development Bank (ADB) might provide $900 million in budget support to Bangladesh by March next year.