The Asian Development Bank (ADB) has approved a $143 million loan to support the Bangladesh government’s efforts to accelerate growth by improving efficiency, predictability, and security of cross-border trade. ADB is committed to achieve a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while sustaining efforts to eradicate poverty.

Bangladesh has been carrying out trade facilitation strategies to enhance export diversification and competitiveness by improving the quality of exports, signing bilateral trade and investment cooperation agreements, and promoting trade through better coordination among border agencies and private stakeholders, ADB said in a press release.

“ADB’s assistance supports the government’s goal of accelerating economic growth through industrialization and trade,” said ADB principal economist Tadateru Hayashi. “The program will help diversify the country’s export products and destinations. Improved connectivity will facilitate subregional trade and commerce among the South Asia Subregional Economic Cooperation countries.”

The ADB loan package includes a $90 million policy-based loan, which will support reforms in areas including bringing the country’s customs legal frameworks in compliance with international standards, improving cargo clearance processes, and strengthening the capacity of the National Board of Revenue (NBR) and the ministry of commerce.

To complement the policy reforms, a $53 million project loan will construct integrated land customs stations and land ports of NBR and the Bangladesh Land Port Authority (BLPA) at Akhaura, Sonamasjid, and Tamabil border crossing points (BCPs). Facilities and equipment for customs clearance and cargo transshipment operations will also be installed. 

ADB will provide a $1.5 million technical assistance grant from its Technical Assistance Special Fund to support the modernisation of the customs legal framework and coordination among the border agencies, prepare an operationalisation plan of central customs facilities, strengthen NBR’s capacity to implement modernised customs operations at BCPs, and build the project implementation capacity of NBR and BLPA.

Fibre2Fashion News Desk (RR)

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