The Asian Development Bank (ADB) plans to provide Bangladesh with $200 million in financial support aimed at advancing private sector reforms and fostering economic growth, according to officials involved in the programme. The funding is set to be disbursed in two installments of $100 million each, with the first scheduled for 2027 and the second for 2029.
This initiative, known as the Bangladesh Reforms for Investment and Growth (BRIGHT) programme, is designed as a policy-based loan to assist the government in improving the regulatory and investment climate, facilitating both domestic and foreign direct investment (FDI), and strengthening the public-private partnership (PPP) framework. The programme also aims to unlock private investment in sectors with strong growth potential, aligning with the government's broader vision of achieving a $1.0 trillion economy and implementing the Integrated Growth Network Development (IGND) initiative.
A team from the ADB conducted a consultation mission in Dhaka in August 2026 to engage with government officials and various stakeholders, including private sector chambers, business associations, and health sector experts. The Economic Relations Division (ERD) of Bangladesh recommended that the BRIGHT programme prioritize reform measures with clear links between policy actions and measurable outcomes. They emphasized the importance of building on past reform experiences and ensuring coherence with ongoing and future policy-based lending programmes.
Representatives of the private sector stressed the need to strengthen implementation of existing policies, reduce discretionary interventions in regulatory processes such as tax, VAT, and customs administration, and enhance oversight institutions. They also called for capacity development of the Invest Bangladesh Authority (IBA), addressing challenges in PPP project origination and execution, and modernizing legal frameworks related to commercial contracts, dispute resolution, arbitral awards, intellectual property, and trade secrets. The private sector also suggested exploring the replication of success stories from the readymade garment (RMG) industry and multinational corporations within emerging sectors.
Health sector stakeholders highlighted the necessity of adopting international best practices to attract investment, develop the healthcare workforce, and improve the affordability and quality of healthcare. In the pharmaceutical sector, experts pointed to a global shift from generic medicines to biosimilars and advanced pharmaceutical products, advocating for modernized policies and strengthened regulatory and institutional capacity to maintain Bangladesh’s competitiveness.
The funding is expected to be provided under a budget support credit programme, with an agreement anticipated to be signed by mid-2027. This support aligns with Bangladesh’s commitment to further deregulate and reform its private sector to spur sustainable economic growth and development.