Bangladesh is likely to request Japan International Cooperation Agency (JICA) President TANAKA Akihiko to slash the newly hiked interest rates for the loans to be used to finance different projects, officials say.
Prime Minister Tarique Rahman may appeal to the JICA chief in this regard, underscoring the growing fiscal pressure on the country as it navigates structural economic reforms and large-scale development costs, they say.
The proposal will serve as a core agenda item during the upcoming high-profile official visit of the JICA president to Bangladesh, scheduled from July 1 (tomorrow) to 5, a senior Ministry of Finance (MoF) official says.
On July 2, the JICA president will pause official state diplomacy to pay solemn homage to the victims of the July 2016 Holey Artisan Bakery tragedy, which claimed 29 lives, including seven Japanese development consultants who were explicitly deployed to advance Dhaka's landmark metro rail network.
The finance ministry official says, "Dhaka will seek a reduction in the project lending rate as the Japanese development partners recently imposed a 3.05 per cent interest rate framework, up from 2.35 per cent."
The prime minister will also request the JICA president to extend its annual support to Bangladesh to facilitate the country's reforms and development on the ground of the government's election manifesto, the official says.
JICA recently imposed 3.05 per cent interest rate on its lending for borrowing between April and September 2026.
The government policymakers observe that it is a critical juncture for Bangladesh amid the internal and external shocks to the national economy.
After his arrival tomorrow, the JICA president will meet the prime minister in the afternoon.
Alongside meeting him, the dignitary will conduct thorough bilateral talks with a cohort of the country's economic and infrastructure cabinet ministers, including Finance Minister Amir Khosru Mahmud Chowdhury, Road Transport and Bridges Minister Shaikh Rabiul Alam, and Power, Energy & Mineral Resources Minister Iqbal Hassan Mahmood, during the visit.
According to finance ministry officials, deliberations will focus on portfolio optimisation, external debt management, fiscal stability, and ongoing budgetary support programmes.
The road transport minister is likely to discuss the expansion of mass transit systems and major arterial highway corridors funded by the Japanese Official Development Assistance (ODA).
The energy minister may consult with the JICA chief to evaluate the ongoing power diversification strategies, grid stability initiatives, and energy resilience packages designed to shield the domestic economy from global energy vulnerabilities.
The focus of these high-stakes discussions will extend to strategic investments required as Bangladesh transitions from the Least Developed Country (LDC) status.
Beyond institutional dialogue in the capital, the JICA president will embark on field visits to examine the physical progress and social impacts of multi-billion dollar projects in the southeastern coastal belt.
The delegation will travel to Moheshkhali in Cox's Bazar from July 3 to 4 to inspect the flagship Matarbari port development project.
Formulated under the Bay of Bengal Industrial Growth Belt (BIG-B) initiative, this deep-sea port acts as a cornerstone for regional commercial connectivity.
JICA's multi-tranche funding for Matarbari aims to accommodate high-capacity vessels, fundamentally reshaping the maritime logistics, trade efficiency, and industrial capabilities of Bangladesh.
The itinerary features a comprehensive tour of the Rohingya refugee camps in Cox's Bazar.
JICA has continually funded emergency humanitarian assistance, clean water networks, disaster-resilient facilities, and community empowerment programmes for the displaced population, hosting local communities and coordinating efforts with global relief frameworks.
Japan operates as Bangladesh's largest single bilateral development partner.
Over the last few decades, JICA's cumulative ODA commitments to Bangladesh exceeded $33 billion, traversing critical financial mechanisms such as highly concessional project loans, grand-scale grants, technical assistance, and direct budgetary support.
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