US Commits to Supporting Bangladesh’s Economic Growth with Additional $202 Million in Aid, According to Reuters

By Ruma Paul

DHAKA (Reuters) – The United States is dedicated to fostering inclusive economic growth, building institutions, and supporting development in Bangladesh, and will provide an additional $202 million in aid, a U.S. delegation announced during its visit to Dhaka on Sunday.

Led by Deputy Under Secretary of the Treasury Neiman, the six-member delegation is the first from the U.S. since the new interim government, headed by Nobel laureate Muhammad Yunus, took office last month following the ousting of Prime Minister Sheikh Hasina amid violent protests.

In a televised address last week, Chief Adviser Yunus mentioned that the government is seeking $5 billion in aid to stabilize an economy adversely affected by the Ukraine conflict, which has sharply raised fuel and food import costs. Last year, Bangladesh sought a $4.7 billion bailout from the International Monetary Fund.

The United States Agency for International Development (USAID) announced a grant of $202 million aimed at promoting good governance and enhancing social, human, and economic opportunities and resilience. This agreement, signed on Sunday in Dhaka, comes after a prior commitment in 2021 when USAID pledged a total of $954 million between 2021 and 2026, of which $425 million has already been disbursed.

Following the meeting with Yunus, the U.S. embassy released a statement on social media highlighting its commitment to assist Bangladesh in achieving a more equitable and inclusive future.

Yunus called for U.S. support in rebuilding Bangladesh, implementing essential reforms in the judiciary, police, and financial institutions, and recovering assets allegedly misappropriated by the previous government, according to a statement from his office.

The visiting U.S. delegation expressed willingness to support these reform initiatives by offering technical and financial aid. The discussions also revolved around economic reforms, investment opportunities, labor issues, the Rohingya crisis, and Yunus’s upcoming visit to New York for the U.N. General Assembly.

During their visit, the U.S. delegation engaged in talks with key figures from the interim government, including 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 who concluded a tour of India before arriving in Dhaka, was part of this delegation.

The U.S. embassy reiterated its commitment to working with Bangladesh to expand economic opportunities, strengthen institutional capacity, uphold human rights, and tackle climate-related challenges.