The Asian Development Bank (ADB) on Friday approved a $250 million loan to support Bangladesh in implementing key reforms aimed at strengthening the country’s social protection system.
The initiative is designed to improve efficiency, expand coverage, and enhance the overall effectiveness of social safety programmes.
The financing falls under Subprogram 2 of the Second Strengthening Social Resilience Programme, which focuses on reducing vulnerability, exclusion, and poverty risks through stronger protective and preventive measures. It also aims to improve system management and broaden access to social protection for vulnerable groups.
ADB Country Director for Bangladesh Hoe Yun Jeong said the initiative marks a major step toward building a modern and inclusive social protection framework. “This programme represents an important milestone in Bangladesh’s transition toward a more modern, inclusive, and resilient social protection system,” he said.
He added that expanding coverage-particularly for women-and introducing contributory protection mechanisms would help reduce poverty risks while supporting long-term economic stability.
He further noted that ADB remains committed to supporting Bangladesh in developing a more efficient and adaptive system that promotes inclusive growth and shared prosperity.
Key reform measures
Under the programme, Bangladesh will introduce contributory social protection schemes aimed at easing long-term fiscal pressures. The widow allowance programme will also be expanded to cover at least 2,50,000 additional vulnerable women.
In addition, adaptive social protection measures will be strengthened through climate-responsive initiatives under a core workfare programme. Access to financial services for women entrepreneurs is expected to rise by at least 15percent through a targeted refinancing scheme operated by Bangladesh Bank.
Expected impact
The reforms are projected to generate broad socio-economic benefits, including improved productivity, higher female labour force participation, and reduced poverty levels. These outcomes are expected to contribute to stronger macroeconomic stability and inclusive growth.
Founded in 1966, the Asian Development Bank is a multilateral development institution comprising 69 member countries, including 50 from the Asia-Pacific region.
It focuses on promoting sustainable, inclusive, and resilient development across its member states through financial support and strategic partnerships.
