WB to roll out another $1.1b for Bangladesh

The World Bank is set to place a proposal at its board meeting on December 16 to inject fresh $1.1 billion into Bangladesh with the aim to alleviate poverty and facilitate tax reforms to boost the government's revenues.

Of the $1.1 billion, $400 million will go to primary education, for which the multilateral lender has designs to run a cash incentive programme to boost enrolment.

It also has plans to run an income support programme for the poor with $300 million. The programme will involve handing out cash to expectant or new mothers to ensure better nutrition for their children.

Another $60 million will go for automation of the value-added tax system, a long-standing demand of the WB.

“Improving Bangladesh's ability to raise tax revenue is critical for faster economic growth and overcoming poverty, as the country needs more resources to invest in infrastructure and human development,” Johannes Zutt, WB country director, earlier said.

The Washington-based lender also has designs to set up multipurpose disaster centres in nine cyclone hit areas with $350 million.

About 450 cyclone centres and 500 repair centres would be built. The World Bank has committed $2 billion for Bangladesh this fiscal year; the $1.1 billion would be part of the sum.