ADB approves $400 mn loan to Bangladesh for economic reforms
14 Jun 23 2 min read
Insights
- ADB has approved a $400 million loan to Bangladesh for economic reforms, public spending efficiency, and financial inclusion.
- The loan supports tax reforms, enhances public procurement transparency, and promotes low-cost bank financing for small businesses, especially women-led enterprises.
- The subprogramme also prioritises climate change.
This loan represents the second subprogramme of ADB's Sustainable Economic Recovery Program, which was initiated in October 2021 to facilitate the country's post-pandemic economic revival, ADB said in a press release.
A key component of the programme is the enhancement of income tax collection through the implementation of a new Income Tax Act, aimed at closing tax loopholes, strengthening compliance and enforcement measures, and expanding the country's tax base. Furthermore, efforts will be directed towards improving transparency and efficiency in public procurement by bolstering electronic procurement and payment systems. The newly launched digital system for public project appraisal and approval processes will streamline project approval procedures.
The loan package also supports the innovative financing services initiated by Bangladesh Bank, which provide low-cost microcredit through commercial banks via digital channels and e-wallets. This initiative will enable marginalised and landless farmers, small traders, and low-income earners to access bank lending. Additionally, micro and small businesses, as well as women entrepreneurs without property collateral, will be able to obtain finance based on trade receipts and other non-fixed collateral, such as small equipment and machinery.
- Bangladesh’s economic zone attracts $22.92mn Chinese investment
- Bangladesh PM urges waste management system in new industries
- ILO project to sustainably reintegrate migrant workers in Bangladesh
- HSBC urges Dhaka to bank on opportunity arising out of FDI into Asia
- Bangladesh garment sector scheme now covers commuting accidents
- Bangladesh textiles minister urges India to lift ADD on jute products
Promoting gender equality, social inclusion, and addressing the climate change agenda in public investment and national budgeting are key areas of focus within this comprehensive programme.
“This subprogramme enables Bangladesh to enhance revenues, promote efficiency and transparency in public spending and public procurement, deepen the reforms of state-owned enterprises, and help small businesses and microentrepreneurs to access low-interest affordable credits from the banking sector,” said Aminur Rahman, ADB’s principal public management economist for South Asia. “The subprogramme, with a strong focus on gender, climate change, and digitisation, enables the government to strengthen its efforts to support income generation for the poor and vulnerable.”
Fibre2Fashion News Desk (DP)
Popular News
|
Vietnam’s textile & garment exports rise 6.7% in Jan-Apr 2024 |
|
UFLPA’s impact on US textile imports: A shift in global trade dynamics |
|
Cotton yarn prices fall on slow buying in south India |
|
US small business owners highlight pricing as top concern: Report |
|
China dominates as India's top yarn, fabric & home textiles supplier |
|
Chinese cotton may stay weak, but short-term rebound possible |