Towards Upper-Middle-Income Status: ADB promises all-out support
The Asian Development Bank yesterday said it is ready to provide all-out support to Bangladesh to face its immediate and long-term challenges to becoming an upper-middle-income country by 2031.
The development comes in response to Prime Minister Sheikh Hasina's calls for a flexible mode of financing and innovative financing products from ADB to spur skill development, health, ICT-based entrepreneurship and quality infrastructure as well as tackle climate change.
"At this critical juncture, we frustratingly observe that many development partners are raising the rates of interest, which make development financing economically non-viable for most of the projects," Hasina said at an event to celebrate 50 years of partnership with ADB.
In response, Masatsugu Asakawa, president of the Manila-based multilateral lender, assured of widening its partnership with the country and increasing financial support for key development priorities to help achieve the country's goal of becoming an upper-middle-income country by 2031.
"I have witnessed the many ways Bangladesh has been transformed through steady and inclusive economic growth with vibrant private sector engagement over the past decade and a half," said Asakawa, who is in the country on a five-day visit.
ADB stands ready to support Bangladesh in a bigger way on this path to a more prosperous, inclusive, resilient, and sustainable future, enhancing the assistance in climate change adaptation and mitigation, critical economic reforms to diversify the economy and mobilising more domestic resources, he added.
Over the last decade, ADB's assistance to Bangladesh has increased around three times.
So far, ADB has provided $28.38 billion to Bangladesh, making the country the third-largest recipient in the lender's portfolio.
As many as 50 projects are being implemented with ADB's financial and technical assistance.
To help Bangladesh manage the fallout of the global coronavirus pandemic, the lender provided $2.29 billion. It also provided $230 million in emergency support for addressing the impacts of devastating floods in northwest Bangladesh.
Besides, ADB has been extending low-cost financing for the mitigation and adaptation of climate change.
"We observe with great satisfaction that ADB always stands beside us with innovative financing and technical support in our challenging times," Hasina said at the event, which was jointly organised by the government and the ADB at the Intercontinental Dhaka.
The world has been experiencing multiple challenges due to the war in Ukraine and sanctions and counter-sanctions, she said.
"We are the victims of this geopolitical crisis for which we are not responsible at all. This is holding back our hard-earned achievements and leading us to an uncertain world. We could not really predict any immediate solution to this crisis."
The impacts of the war are disproportionately falling on the poorest segments of the global community.
"It is extremely pertinent to develop synergies among us to address the impacts of the multiple economic shocks."
This would require the continuation of concessional financing until the global economy returns to normal.
"We are not seeking pity or donation -- we want our just share as a partner of the global community," she added.
Finance Minister AHM Mustafa Kamal, PM's Principal Secretary M Tofazzel Hossain Miah, Sharifa Khan, secretary of the Economic Relations Division, and Edimon Ginteng, ADB's country director in Bangladesh, were also in attendance.