Asian Development Bank Surpasses World Bank as Top Development Partner for Bangladesh

Strategic Insights -

The Asian Development Bank (ADB) has taken the top spot as the largest development partner for Bangladesh, providing a record-breaking $2.52 billion in foreign assistance in the last fiscal year (FY) 2024-25. This surpasses the World Bank, which provided $2.01 billion in loans and grants, and Japan, which gave $1.578 billion. The ADB's increased fund disbursement is a significant boost for Bangladesh, which faces acute foreign-exchange inadequacies.

Key Takeaways:

  • The Asian Development Bank (ADB) provided $2.52 billion in foreign assistance to Bangladesh in FY 2024-25, surpassing the World Bank and Japan as the largest development partner.
  • The ADB's contribution accounted for 29.6% of Bangladesh's total foreign aid disbursement of $8.57 billion in FY 2024-25.
  • The overall foreign aid disbursement fell by 16.63% from $10.28 billion in FY 2023-24, due to broader challenges in project implementation and aid inflows.
  • The ADB's medium- to-long-term loans and grants primarily came in the form of loans aimed at supporting critical infrastructure and economic development projects.
  • The ADB is currently financing several mega projects in Bangladesh, including the MRT Line-05, Elenga-Hatikamrul-Rangpur highway, and the Dohazari-Ramu-Cox's Bazar railway line projects.
  • Since independence, the ADB has provided $27.09 billion in loans and grants, while the World Bank has provided $32.79 billion.

Statistics:

  • $2.52 billion: The amount of foreign assistance provided by the ADB to Bangladesh in FY 2024-25.
  • 29.6%: The percentage of Bangladesh's total foreign aid disbursement accounted for by the ADB in FY 2024-25.
  • $8.57 billion: The total foreign aid disbursement in FY 2024-25.
  • $2.01 billion: The amount of loans and grants provided by the World Bank to Bangladesh in FY 2024-25.
  • $1.578 billion: The amount of loans and grants provided by Japan to Bangladesh in FY 2024-25.
  • $670 million: The amount of aid provided by Russia to Bangladesh in FY 2024-25.
  • $530 million: The amount of aid provided by the Asian Infrastructure Investment Bank (AIIB) to Bangladesh in FY 2024-25.
  • $410 million: The amount of aid provided by China to Bangladesh in FY 2024-25.
  • 21%: The increase in foreign debt repayment from $3.39 billion in FY 2023-24 to $4.09 billion in FY 2024-25.

Sources:

  • Economic Relations Division (ERD) report
  • Asian Development Bank (ADB) reports
  • World Bank reports
  • Bangladesh government reports