ADB to provide $143m to improve trade facilitation

The Asian Development Bank (ADB) and the Government of Bangladesh on Wednesday signed agreements for a $143 million policy-based loan to improve the volume, efficiency, predictability, and security of cross-border trade in Bangladesh.

Economic Relations Division Secretary Fatima Yasmin and ADB Country Director Edimon Ginting virtually signed the agreement on behalf of Bangladesh and ADB, respectively.

“Aligning with Bangladesh’s policies and strategies, ADB is helping enhance export diversification and competitiveness for accelerating growth with industrialization and trade, and expanding subregional trade and commerce,” said Ginting.

The ADB assistance package includes a $90 million policy-based loan, which will support reforms in areas including bringing the country’s customs legal frameworks in compliance with international standards, improving cargo clearance processes, and strengthening the capacity of the National Board of Revenue (NBR) and the Ministry of Commerce.

“ADB assistance will help increase the volume of imported and exported cargoes at the Akhaura, Sonamasjid, and Tamabil border crossing points (BCP) by 50 per cent by 2027, while reducing average customs clearance and cargo transshipment time by 50 per cent,” Ginting added.

To complement the policy reforms under the agreement, a $53 million project loan will construct integrated land customs stations and land ports of NBR and the Bangladesh Land Port Authority (BLPA) at Akhaura, Sonamasjid, and Tamabil border crossing points (BCPs). Facilities and equipment for customs clearance and cargo transshipment operations will also be installed.