The Asian Development Bank (ADB) committed $2.57 billion in new sovereign financing to Bangladesh in 2025, more than doubling its $1.18 billion commitment in 2024, reflecting expanded support during a period of economic transition.
ADB said its 2025 programme targeted priority investments in energy, transport, banking sector reforms, urban services, climate resilience, small and medium-sized enterprises (SMEs), and the improvement of livelihoods and essential services in Cox’s Bazar.
The lending portfolio represented a balanced mix of sectors and financing modalities.
“We proudly reaffirm our commitment to supporting Bangladesh’s priorities during this significant transition period, which is further complicated by an increasingly challenging global landscape,” said ADB Country Director Hoe Yun Jeong.
“Our 2025 commitments underscore our enduring partnership with Bangladesh and our shared focus on economic diversification, improved infrastructure and services, and human development,” she said, noting close collaboration with the Economic Relations Division (ERD) and other government agencies.
ADB’s sovereign commitments in 2025 covered ten projects, with infrastructure and institutional reforms receiving the largest shares. About 35 percent of total financing supported transport infrastructure, 23 percent finance sector reforms, and 16 percent public sector management and governance.
Energy projects accounted for 11 percent, water and urban development 9 percent, and human and social development 6 percent.
Among the major approvals was the $688 million South Asia Subregional Economic Cooperation (SASEC) Chattogram–Dohazari Railway Project, aimed at upgrading a key rail corridor and constructing a bypass to enable direct train services from Dhaka to Cox’s Bazar.
Another flagship commitment was the $500 million Stabilising and Reforming the Banking Sector Program (Subprogram 1), designed to strengthen regulation, corporate governance, asset quality and overall financial stability.
ADB also approved $400 million for the Climate-Resilient Inclusive Development Program (Subprogram 2) to enhance climate resilience, reduce emissions in climate-sensitive sectors and promote inclusive growth.
ADB said improved project readiness and stronger portfolio management helped bolster implementation performance during the year. In addition to sovereign lending, the bank provided non-sovereign assistance to the private sector, supporting investments in textiles, renewable energy, trade finance, food security, microfinance and public–private partnership (PPP) initiatives.
The lender also worked with other development partners to deliver coordinated support for operationalising the Bangladesh Climate Development Partnership, advancing public and financial sector reforms, and strengthening economic diversification and logistics.
These joint efforts helped mobilise $720 million in co-financing. ADB also provided policy-focused knowledge support on foreign investment, inclusive development and public debt management.
As of December 31, 2025, ADB’s cumulative sovereign and non-sovereign loan commitments to Bangladesh exceeded $42 billion. Its active sovereign portfolio comprised 48 projects with a total value of $10.8 billion.
Looking ahead to 2026, ADB said it would retain flexibility to respond to Bangladesh’s evolving needs, with priorities including the development of economic corridors, multimodal logistics, public sector reforms, capital market development, private sector growth and accelerated digital transformation.
ADB is a leading multilateral development bank supporting inclusive, resilient and sustainable growth across Asia and the Pacific. Founded in 1966, it is owned by 69 members, including 50 from the region.