Bangladesh to receive $1.063 Billion from Japan for budget support

Japan will provide Bangladesh with $1.063 billion in financial support in the form of loans and grants, aimed at budget assistance, railway development, and scholarships.

The agreement was reached on Friday (May 30) between the governments of Japan and Bangladesh.

The news was shared earlier today by Shafiqul Alam, Press Secretary to the Chief Adviser, in a Facebook post. He confirmed that the loan agreement has been formally signed while Chief Adviser Professor Muhammad Yunus is visiting Japan.

Of the total amount, around $418 million will be allocated as a Development Policy Loan to aid Bangladesh's economic reform agenda and strengthen its climate resilience.

An additional $644.1 million will be invested in upgrading the Joydebpur–Ishwardi railway route to a dual-gauge double-track system. Furthermore, Japan will provide $4.2 million in grants for scholarship programs.

In Tokyo, Japanese Prime Minister Ishiba held a bilateral meeting with the visiting Bangladeshi delegation led by Professor Yunus. During the meeting, Prime Minister Ishiba reaffirmed Japan's full support for Bangladesh's interim government, its reform initiatives, and its peaceful transition process.

A joint statement issued after the meeting emphasised Japan's endorsement of Bangladesh's state-building efforts and reform commitments under the leadership of Professor Yunus.

Professor Yunus expressed his gratitude for Japan's long-standing support in promoting Bangladesh’s sustainable development and economic growth. In response, Prime Minister Ishiba praised Bangladesh’s continued humanitarian assistance to displaced people from Myanmar's Rakhine State.

The two leaders also discussed ways to enhance cooperation in human resource development, cultural exchange, and other shared interests.