The World Bank has approved a $500 million financing package to enhance transparency and accountability in Bangladesh's public institutions, as well as to improve corporate governance and stability within the financial sector. This initiative is part of the Strengthening Governance and Institutional Resilience Development Policy Credit, which supports key reforms necessary for sustained economic growth and improved services for vulnerable households.
Gayle Martin, World Bank Interim Country Director for Bangladesh, stated, "Improvements in how public finances are managed are important for Bangladesh’s economy to grow sustainably. The government is taking ambitious steps to make its institutions more open and answerable, so they can serve the people better." She added that this financing would bolster the government's efforts to create a stronger, more inclusive economy.
Bangladesh currently faces challenges with one of the lowest revenue-to-GDP ratios among middle-income countries. The program aims to address this by supporting reforms that enhance domestic revenue mobilization through transparent and efficient tax administration aligned with international standards. A significant reform includes requiring Parliamentary approval for all tax exemptions, moving away from current ad hoc practices.
The financing will also strengthen corporate governance by aligning financial reporting with international standards and enhancing transparency. It aims to improve financial sector stability by equipping the Bangladesh Bank with comprehensive resolution powers to manage banking sector vulnerabilities.
Reforms will also target transparency, accountability, and efficiency across the public sector. By 2027, government project appraisal documents must be publicly accessible. The public procurement system will adopt electronic government procurement (e-GP), disclose beneficiary ownership, and eliminate price caps to encourage competition and reduce corruption risks. Additionally, auditing capacity at the Office of the Comptroller and Auditor General will be enhanced to boost financial accountability.
The independence of the Bangladesh Bureau of Statistics will lead to improved data transparency and service delivery for citizens. Cash transfer programs targeting poor and vulnerable populations will become more effective through a dynamic social registry.
Dhruv Sharma, World Bank Senior Economist and Task Team Leader for the project said, “This Financing is closely aligned with the citizen’s desire for transparency and accountability and will support Bangladesh’s ambitious reform agenda.” He emphasized that improving data systems would ensure government resources effectively reach poor households during economic shocks or natural disasters.
With this new commitment, The World Bank's total commitments to Bangladesh in FY 25 amount to $3.07 billion. Since Bangladesh's Independence, The World Bank has provided over $46 billion in grants, interest-free loans, and concessional credits.