The Asian Development Bank (ADB) has announced a $5 billion financing package for Bangladesh over the next five years to help the country manage rising economic pressures caused by global conflicts and domestic financial challenges. ADB President Masato Kanda made the announcement in Dhaka on Monday during meetings with Prime Minister Tarique Rahman and senior officials. The funds will be used under the 'Integrated Growth Network Development Initiative' to improve connectivity, boost investment, and ensure balanced regional development.

According to ADB, Bangladesh’s import-dependent economy has come under strain due to higher energy, LNG, fertilizer, and transport costs linked to the U.S.-Israel-Iran conflict, alongside persistent inflation and liquidity shortages in the banking sector. The new package will provide about $1 billion annually as part of ADB’s sovereign financing program. During the visit, loan agreements worth $1.4 billion were also signed for energy, transport, climate resilience, and social development projects.

ADB further announced an additional $250 million to address financing gaps and plans to raise its annual sovereign financing for Bangladesh by 20 percent to $2.4 billion, supporting investment-led growth, economic diversification, and governance reforms.