The total loan commitment of the World Bank stood at $3 billion, including $1 billion over the next three years, to combat malnutrition of children following discussions between Prime Minister Sheikh Hasina and the World Bank Chief Jim Yong Kim.
Both amounts are contingent on a successful replenishment of the International Development Association, the World Bank’s fund for the poorest countries, which is likely to be agreed in December.
Kim made the pledge of climate change fund after visiting some schools that doubled as cyclone shelters during major storms. “I am announcing a $2 billion dollar commitment for climate-related projects in the next three years. Today I met with people who talked about the threat of cyclones and flooding, and I also visited a family benefitting from a solar panel on their home.”
“Bangladesh is one of the most vulnerable countries in the world to climate change, and we must do all we can to support the government in its efforts to adapt to this growing threat.”
The World Bank president identified three areas—policy reforms for improving business environment, strengthening institutional capacity and governance—which the government needs to address in order to be successful.
“The first is to enact policy reforms that improve the business climate. Now foreign direct investment in Bangladesh lags behind its neighbours; if the country attracts more investment from the private sector, it will mobilise funds necessary for infrastructure projects.”
Secondly, he said as the government correctly points out in its 7th Five-Year Plan, the country needs to strengthen its institutional capacity. “And third, the Five-Year Plan also importantly emphasizes the need to strengthen governance, which includes building a strong civil service, judiciary, public banks, tax collection and the Anti-Corruption Commission.”
In reply to a question, Kim said not a single country in the world is free from terror attack as we have seen it happen in the United States, France and Belgium. “I can just tell you the security I receive here is extremely impressive.”
About corruption in the project, he said WB policy on corruption is same like every country in every single project. “We have zero tolerance against corruption if we find evidence we act on. We share Bangladesh’s zero tolerance for corruption, believing strongly that any funds diverted from beneficiaries amounts to stealing from the poor.”
Hinting that Bangladesh lacks foreign direct investment, he said now foreign direct investment is less than 1.7% of GDP in Bangladesh, far below that of most countries; foreign direct investment in Vietnam, for instance, was 6.1% of GDP. Strengthening governance will help lead to more jobs in infrastructure, diversify exports, and ensure the health and safety of workers.”
He put emphasis on mobilising more funds from private sector resources and said the World Bank Group is looking forward to working with Bangladesh to promote private sector investment by strengthening governance and improving the investment climate.
Regional Vice-President South Asia, World Bank Annette Dixon said our strategy for the next five year is very much based on Bangladesh seventh fiver plan priorities. “In addition to continuing the support macroeconomic stability, human development and improving business environment development, we will be extending our engagement in energy, particularly renewable energy and inland connectivity, including inland water ways, regional and global integration, and improving standard of urban life.”
Tuesday, July 21, 2026
