ADB may lend $250m for bankrolling budget deficit

Bank mission in Dhaka reviewing country position on financial front, livelihood for poor

FHM HUMAYAN KABIR | Published: November 12, 2025 00:05:37

Bangladesh expects US$250 million soon from the Asian Development Bank in credit for bankrolling budget-financing shortfall, officials say, as an ADB mission is now in Dhaka reviewing country position on financial front.
"The budgetary support might be confirmed within a few months as the ADB mission is assessing our current status on the reform initiatives of the interim government," a senior Economic Relations Division (ERD) official told the FE Tuesday.
The proposed $250-million budget support will be the 2nd tranche of the 'Strengthening Social Resilience Programme' being funded by the bank.
The first tranche worth as much ($250 million) of the programme-based loan was provided by the ADB in the last fiscal year (FY) 2023-24.
"A fact-finding mission from the ADB is discussing with different ministries and agencies of the government relevant with the programme. After completing the mission, we would go for negotiations with the lender shortly. Then it will be confirmed for signing," says another ERD official.
Under the lending programme, the Manila-based lender would help facilitate Bangladesh's social-protection system aimed at bringing underprivileged people into the practical economic activities, he adds.
In the last fiscal year, the ADB provided budget support to Bangladesh worth $600 million for weathering the LDC-graduation challenges after 2026.
It had also confirmed another $500 million worth of budget support in the last fiscal for the banking-sector reforms in Bangladesh.
According to the ADB, this programme supports government's Action Plan Phase II on the National Social Security Strategy 2021-2026 to strengthen protective and preventive capacity of the social-protection system in the country. The programme is meant for improving efficiency in the social-protection-programme management, enhancing protection for the most vulnerable, and improving the social-protection scope by introducing contributory protection schemes.
This will help reduce vulnerability, exclusion, and the risk of people falling into further poverty, the Bank says. The programme introduces a verification scheme of beneficiary's survival for cash-based social- protection programmes to reduce leakages, the lender says.
"We will try to sign the $250-million budget support by December 2025 for minimizing the budget gap," says the ERD official.