Bangladesh has secured $1 billion in financing from the Islamic Development Bank to expand Eastern Refinery as the government seeks to strengthen energy security and build a new manufacturing-driven growth model beyond the garment industry.
The agreement, signed on Thursday in the presence of Prime Minister Tarique Rahman and IsDB Group President Dr Muhammad Al Jasser, will finance the modernization and expansion of the state-owned refinery and increase its annual crude oil processing capacity by 3 million tons.
Tarique described the deal as more than a financial transaction, calling it a “statement of confidence” in Bangladesh and linking energy security directly to the government’s ambition to turn the country into a regional manufacturing hub.
“Garments built our first growth story. Now we want electronics, pharmaceuticals, light engineering, and green industry to build the next one,” he said. “We want factories that create jobs and dignity.”
The prime minister said the government aims to build a trillion-dollar economy by 2034 and double the size of the economy this decade through exports, investment and financial discipline.
“This is not a slogan. It is a plan,” he said.
Tarique said the refinery expansion would strengthen Bangladesh’s energy security, economic resilience and long-term growth capacity at a time when geopolitical conflicts, supply-chain disruptions and energy insecurity are putting increasing pressure on developing economies.
Economic Relations Division Additional Secretary Dr Md Mizanur Rahman and IsDB Director General for Country Programmes Anasse Aissami signed the agreement on behalf of Bangladesh and the bank respectively at the Bangladesh Secretariat.
The prime minister said Bangladesh now wants a broader relationship with IsDB, seeking more innovative, low-cost and results-oriented financing aligned with the country’s development priorities.
He said Bangladesh was particularly interested in benefiting from IsDB’s Islamic Concessional Fund, with the ERD and the bank’s Dhaka hub already working to identify potential projects.
Tarique also urged IsDB to act as a bridge among member countries with different strengths in energy, infrastructure and other sectors.
“Let the members build with each other, not just alongside each other,” he said.