The Asian Development Bank (ADB) will provide $400 million to Bangladesh as part of budget support by December this year, said Finance and Commerce Adviser Salehuddin Ahmed.
He disclosed to reporters on Sunday after a courtesy meeting with delegations from ABD, Japan International Development Agency (JICA), and the Australian high commissioner (acting) in Dhaka at the finance ministry office in secretariat.
In response to queries, Salehuddin said all three (ADB, JICA and Australia) are positive about providing funds to Bangladesh. The $400 million ADB budget support will arrive by December. The IMF will provide $4.7 billion. We have asked for another $3 billion from them.
“JICA is an important development partner of Bangladesh. Many of our key projects are funded by them. We urged them to continue the physical infrastructure loans, and they will continue. I also spoke about two other matters – disaster management and technical issues.
Discussing the flow of foreign loans, the finance and commerce adviser pointed out, “The flow of foreign loans is just right, as those did not decrease at all. But there are many questions regarding their utilisation.
“The three who came today (Sunday) are our development partners. We have spoken to all of them, and asked them to strengthen the ongoing support they had provided for so long.”
He continued, “Australia is one of our important development partners, as the support they provide has a direct impact. Australia is a much larger country than Europe, Canada and the UK. They cooperate by providing funds.
“They have expressed interest in regional trade. We mentioned that regional trade with Bangladesh is very limited. If Australia comes here we can join ASEAN.
Salehuddin added, “Regional trade is necessary, as we are limited in this sector. So we have an economic future with Australia. They want to invest in our energy and agricultural sectors.
“Discussions have been held with three development partner countries. They will engage more with us in the coming days.”
During the parleys, he said the development partners have assured the government of providing more assistance and making more new engagements.
Dr Salehuddin said the government wants from the development partners to reduce further the cost of interests and bringing in more low cost funding.
Besides, the government also wants that the development partners extend the repayment period to at least 30 years as China has recently been requested in this regard. However, Japan is already complying with this, he added.
Besides, the adviser said that discussions on funding projects in the physical infrastructure sector alongside energy, agriculture, disaster management also took place in the meetings.
JICA chief representative Tomohide Ichiguchi, Acting High Commissioner of Australia to Bangladesh Nadira Simpson and ADB Director on Public Sector Management and Governance Sector Cigdem Akin led their respective delegations in the meetings.
