Bangladesh receives $1.063 billion from Japan

Japan is providing financial assistance of about Tk 13,000 crore to Bangladesh. This money will be allocated for budget support, railway development and education. The Chief Advisor's Press Secretary Shafiqul Alam confirmed that an agreement in this regard has already been signed between the two countries.

In this aid package from Japan, $418 million will be provided as a development policy loan, which will be used for economic reforms and increasing climate resilience.

On the other hand, $641 million has been allocated for converting the Joydevpur-Iswardi railway line into a dual-gauge double line to improve rail connectivity in the northern region. Those concerned believe that this will usher in a major infrastructure development in the country's rail transport sector.

A grant of $4.2 million will be provided for human resource development in the education sector, especially for Bangladeshi students studying in Japan for higher education, which will create new opportunities for talented students.

The agreement is the result of the recent visit of Bangladesh’s Chief Adviser Professor Muhammad Yunus to Tokyo, where he held a bilateral meeting with Japanese Prime Minister Shigeru Ishihara. During the meeting, the two leaders reaffirmed their commitment to strengthen mutual cooperation based on peace, stability, rule of law and democracy.

The meeting directed for the speedy completion of the Economic Partnership Agreement (EPA) and welcomed several projects to further encourage Japanese investment in Bangladesh. These include:

One Stop Service System

Installation of prepaid gas meters

Establishment of battery factories

Information security pilot project

Land agreement in Bangladesh Special Economic Zone (BSEZ)

Also, as part of security cooperation, Japan will provide five patrol boats for the Bangladesh Navy under the ‘OSA Program’. More significantly, the two countries have also agreed in principle on the transfer of defense technology.

Discussions also focused on increasing cultural and human resource exchanges to further deepen bilateral relations.

The leaders of both countries expressed optimism that this financial assistance and the advancement of partnership will take Bangladesh-Japan relations to a new height.