The Asian Development Bank (ADB) has approved a $250- million loan for Bangladesh to support critical reforms, aiming to improve the efficiency, coverage, and effectiveness of the country's social protection system.
The Sub-programme 2 of the Second Strengthening Social Resilience Programme aims to strengthen protective and preventive social-protection measures to reduce vulnerability, exclusion, and poverty risks, said the Manila-based multilateral lender in a press statement on Friday.
The programme focuses on improving social protection system management, expanding its coverage and scope, as well as enhancing protection for vulnerable populations, it mentioned.
"This programme represents an important milestone in Bangladesh's transition toward a more modern, inclusive, and resilient social protection system," the press release said, quoting ADB Country Director for Bangladesh Hoe Yun Jeong.
By expanding coverage for vulnerable groups, particularly women, and introducing contributory protection mechanisms, the reforms, introduced by this programme, would help reduce poverty risks while supporting long-term economic stability, said Mr Jeong.
"ADB is proud to partner with Bangladesh in building a system that is more efficient, adaptive, and better equipped to promote inclusive growth and shared prosperity," the ADB country head said.
Reforms under the programme include the development of contributory social protection schemes, which is expected to help ease longer-term fiscal pressure.
The widow allowance programme will also extend support to at least 250,000 additional vulnerable women, while adaptive social protection will be strengthened through initiating climate adaptive measures under a core workfare programme.
In addition, access to financial services for women entrepreneurs will increase by at least 15 per cent through the Bangladesh Bank's targeted refinancing scheme.
The initiatives under the programme are expected to generate significant micro-level outcomes, including enhanced productivity and efficiency, increased female labour force participation, and greater poverty reduction, leading to positive macroeconomic effects and contributing to inclusive economic growth, the press release said.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific.
Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet.
Founded in 1966, ADB is owned by 69 members, 50 from the region.
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