US grants Bangladesh an additional $202 million in aid

US grants Bangladesh an additional $202 million in aid

During a visit to Dhaka on Sunday, a U.S. delegation announced that the United States is dedicated to fostering inclusive economic growth, strengthening institutions, and advancing development in Bangladesh. The delegation plans to provide an additional $202 million in aid.

A six-member delegation, headed by Deputy Under Secretary of the Treasury Department Brent Neiman, marks the first visit from the U.S. since the interim government, led by Nobel laureate Muhammad Yunus, assumed power last month. This transition followed the removal of Prime Minister Sheikh Hasina amid violent protests.

During a televised address last week, Chief Adviser Yunus announced that the government is seeking $5 billion in aid to stabilize an economy that has faced significant challenges since the Ukraine war, which has led to a sharp rise in fuel and food import costs. Last year, Bangladesh requested a bailout of $4.7 billion from the International Monetary Fund.

The United States Agency for International Development (USAID) announced a substantial $202 million grant to enhance good governance and foster social, human, and economic opportunities and resilience. This agreement was formalized on Sunday in Dhaka.

The initiative stems from a 2021 agreement in which USAID committed to $954 million from 2021 to 2026, with $425 million already disbursed.

The U.S. embassy stated on its Facebook page after the meeting with Yunus, highlighting its commitment to assist Bangladesh in achieving a more “equitable and inclusive future.”

Yunus has reached out for U.S. assistance in reconstructing Bangladesh, emphasizing the need for critical reforms in the judiciary, police, and financial institutions and efforts to recover assets misappropriated by the former government, as stated by his office.

A statement revealed that the visiting U.S. delegation conveyed Washington’s readiness to provide technical and financial support for these reform initiatives.

The discussions encompassed a range of topics, including economic reforms, investment strategies, labour concerns, the Rohingya crisis, and Yunus’s forthcoming trip to New York for the U.N. General Assembly.

U.S. visitors engaged in discussions with prominent figures of the interim government, such as Foreign Affairs Adviser Mohammad Touhid Hossain, Finance and Commerce Adviser Salehuddin Ahmed, and Bangladesh Bank Governor Ahsan Mansur.

Donald Lu, the assistant secretary for South Asia, recently arrived in Dhaka following the conclusion of his tour in India, where he was a vital member of the delegation.

The U.S. embassy has reiterated its dedication to working alongside Bangladesh to enhance economic prospects, strengthen institutional capabilities, promote human rights, and tackle climate-related challenges.

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