The World Bank has approved a $500 million budget support loan for Bangladesh to enhance financial sector transparency, accountability, and stability.
The decision was made during a board meeting held on Saturday (June 21) at the World Bank’s headquarters in Washington, DC.
According to an official press release, the funds will be used to strengthen public revenue collection, improve tax policy transparency, reinforce risk management in the banking sector, and support the introduction of e-procurement in public services to prevent corruption.
Gail Martin, the World Bank’s Acting Country Director for Bangladesh, said, "Improving public financial management is crucial for Bangladesh`s sustainable economic growth. This financing will help strengthen the country`s policy framework."
The financial support will focus on several key reforms: ensuring greater transparency and accountability in granting tax exemptions through the national parliament, aligning banking sector risk management and financial reporting with international standards, developing strategies to publicly disclose project evaluation reports by 2027, and mandating e-GP (electronic government procurement) in public purchases to promote more competitive tender processes.
World Bank Senior Economist Dhruva Sharma stated, "This financing will help the government respond to citizens` needs with greater transparency and accountability, and ensure support for poor families during disasters or economic shocks."
