Written by The Banking Post
Bangladesh is likely to receive between US$300 million and US$500 million in budget support from the World Bank to facilitate its smooth graduation from least-developed country (LDC) status next year, officials confirmed.
The proposal was tabled during a recent meeting between World Bank representatives and the commerce ministry. A mission from the lender is expected soon to finalise the programme’s scope, terms, and conditions.
Discussions covered potential reforms in the Bangladesh Trade and Tariff Commission, trade policy adjustments, support for paperless business, and measures to boost cross-border trade. The financing would also provide policy assistance for both private and public investments.
Commerce Secretary Mahbubur Rahman said he had requested a needs assessment to be carried out through the ministry’s Planning Wing. “Once we can determine the needs, the Finance Division will then take forward the budget-support issue,” he noted.
Bangladesh is set to graduate from the LDC group in November 2026, after which it will lose many tariff preferences and export incentives. Officials fear local industries will face tougher competition once subsidies are phased out.
Currently, the commerce ministry is implementing the World Bank-funded Export Competitiveness for Jobs (EC4J) project, which received $100 million to promote export diversification beyond apparel. The project focuses on leather, footwear, light engineering, and plastics—sectors where Bangladesh holds comparative advantages.
In FY25, Bangladesh secured over $1 billion in budget support from the World Bank, tied to reforms in financial stability, public-sector efficiency, and climate resilience. Officials said the government may seek additional support from both the World Bank and IMF at the upcoming annual meetings in October.
