In a major financial backing, the Asian Development Bank (ADB) and the World Bank have approved a combined loan package worth $1.5 billion for Bangladesh. The funding aims to support wide-ranging reforms, including overhauling the country’s banking sector, strengthening climate resilience, and boosting sustainable development initiatives.

The World Bank’s contribution of $1 billion focuses on improving the financial sector, increasing transparency, and reducing non-performing loans — a pressing issue in Bangladesh’s economy. Meanwhile, ADB’s $500 million will help fund critical climate change mitigation and adaptation projects, including infrastructure resilience, renewable energy transition, and disaster preparedness.

Officials in Dhaka welcomed the announcement, calling it a timely intervention to accelerate reforms and prepare for long-term sustainability. With global financial institutions stepping in, Bangladesh is positioning itself to modernize its economy while addressing the urgent climate challenges it faces.

The loans also highlight growing international confidence in Bangladesh's policy direction, even amid global economic uncertainty.