Japan to provide $1.063 billion aid to Bangladesh, sign agreement for economic reforms and railway development

A deal has been signed and agreements have been exchanged between Bangladesh and Japan, under which Tokyo will provide a total of $1.063 billion to Bangladesh as budget assistance, railway development and grants.

This information was given in an official message sent by the Press Wing of the Chief Advisor on Friday (May 30).

Under the agreement, Japan will mainly finance three sectors:

1. Economic Reform and Climate Resilience Development Policy Loan (DPL): $418 million will be provided in this sector. It will be used as budget support, through which work will be done to reform the economic structure and increase the capacity to cope with the impacts of climate change.

2. Railway Development: Japan will provide a loan of $641 million to convert the Joydevpur-Iswardi route into a dual-gauge double line. This will increase the country’s internal communication system and cargo transportation capacity.

3. Scholarship Grants: A grant of $4.2 million will be allocated for Bangladeshi students. With this money, talented students from Bangladesh will be able to participate in higher education and training programs.

This assistance agreement is seen as an example of deeper and multidimensional cooperation in the Bangladesh-Japan bilateral relationship.