US commits $202 million in aid to support Bangladesh’s economic growth and stability

The United States has reaffirmed its commitment to supporting Bangladesh’s comprehensive economic growth, institutional development and overall progress as it announces an additional $202 million in aid on Sunday.

This announcement comes as a six-member US delegation, led by Deputy Under Secretary of the Treasury Department Brent Neiman, visits Bangladesh - marking the first high-level US visit since the interim government took office last month.

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In a televised address last week, Bangladesh’s Chief Adviser Yunus appealed for $5 billion in international aid to stabilize Bangladesh’s economy, which has faced significant challenges since the Ukraine conflict led to a surge in fuel and food import costs. This request follows Bangladesh’s previous bid for a $4.7 billion bailout package from the International Monetary Fund in the preceding year.

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The United States Agency for International Development (USAID) said it would provide a $202 million grant to promote good governance, social, human and economic opportunity and resilience, in a deal signed on Sunday in Dhaka.

It follows a 2021 agreement where USAID pledged a total of $954 million between 2021 and 2026, of which $425 million had already been provided.

In a statement released on its Facebook page following the meeting with Yunus, the U.S. embassy emphasised its readiness to support Bangladesh in its pursuit of a more ”equitable and inclusive future”.

Yunus sought US support to help rebuild Bangladesh, carry out essential reforms to the judiciary, police and financial institutions and to recover assets stolen by the previous regime, according to a statement from his office.

The visiting U.S. delegation expressed Washington’s willingness to support these reform efforts, offering both technical and financial assistance, the statement said.

The talks also covered economic reforms, investment, labour issues, the Rohingya crisis and Yunus’s upcoming visit to New York for the U.N. General Assembly.

The U.S. visitors also held discussions with key members of the interim government, including Foreign Affairs Adviser Mohammad Touhid Hossain, Finance and Commerce Adviser Salehuddin Ahmed and Bangladesh Bank Governor Ahsan Mansur.

Donald Lu, assistant secretary for South Asia, who arrived in Dhaka after wrapping up his India tour, was part of the delegation.

The interim government, headed by Nobel laureate Chief Adviser Muhammad Yunus, assumed power following the ousting of Prime Minister Sheikh Hasina amidst widespread protests. Earlier, the US State Department said the discussions will focus on how the US can contribute to Bangladesh’s economic growth, financial stability, and development priorities.

With inputs from agencies.