The Asian Development Bank (ADB) committed $2.57 billion in new sovereign financing to Bangladesh in 2025, more than double its $1.18 billion pledge the previous year, signalling stepped-up development support amid a challenging global environment.
The financing targeted priority areas including energy, transport, banking reforms, urban services, climate resilience, small and medium-sized enterprises and livelihood support in Cox’s Bazar, the development partner said in a press release issued on Monday.
“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 Asian Development Bank Country Director Hoe Yun Jeong.
The 2025 sovereign lending portfolio covered ten projects, with around 35 per cent of the total allocated to transport infrastructure, 23 per cent to the finance sector and 16 per cent to public sector management and governance.
Energy initiatives accounted for 11 per cent of the commitments, while water and urban development received 9 per cent and human and social development 6 per cent.
Key approvals included a $688 million South Asia Subregional Economic Cooperation Chattogram-Dohazari Railway Project to upgrade a critical rail corridor and enable direct train services from Dhaka to Cox’s Bazar.
Another $500 million was committed under the Stabilising and Reforming the Banking Sector Program Subprogram 1 to strengthen regulation, corporate governance, asset quality and financial stability.
ADB also approved $400 million for the Climate-Resilient Inclusive Development Program Subprogram 2 to enhance climate resilience, reduce emissions in climate-critical sectors and promote inclusive growth.
The bank said improved project readiness and portfolio management strengthened implementation in 2025, while non-sovereign financing supported private sector investments in textiles, renewable energy, trade finance, food security, microfinance and public-private partnerships.
In collaboration with other development partners, ADB mobilised $720 million in cofinancing and provided policy support on foreign investment, inclusive development and public debt management.
As of 31 December 2025, cumulative sovereign and non-sovereign loan commitments to Bangladesh exceeded $42 billion, with an active sovereign portfolio of 48 projects worth $10.8 billion.
Looking ahead to 2026, ADB said priorities would include developing economic corridors, strengthening multimodal logistics, advancing public sector and capital market reforms, promoting private sector development and accelerating digital transformation.
