ADB approves $250m loan for Bangladesh social safety programme

The Asian Development Bank (ADB) on Friday announced it would provide Bangladesh with a new $250 million loan package to help reform the country’s social security system.

The Subprogram 2 of the Second Strengthening Social Resilience Program is aimed at operationalising and institutionalising critical reforms to improve the efficiency, coverage, and effectiveness of the country’s social protection system, ADB said in a media release.

The program further aims to strengthen protective and preventive social protection measures to reduce vulnerability, exclusion, and poverty risks. The program focuses on improving social protection system management, expanding its coverage and scope, and enhancing protection for vulnerable populations.

“This program represents an important milestone in Bangladesh’s transition toward a more modern, inclusive, and resilient social protection system,” said ADB Country Director for Bangladesh Hoe Yun Jeong. By expanding coverage for vulnerable groups—particularly women—and introducing contributory protection mechanisms, the reforms, introduced by this program, will help reduce poverty risks while supporting long-term economic stability. “ADB is proud to partner with Bangladesh in building a system that is more efficient, adaptive, and better equipped to promote inclusive growth and shared prosperity”, Jeong said. 

Reforms under the program include the development of contributory social protection schemes, which is expected to help ease longer-term fiscal pressure. The widow allowance program will also extend support to at least 250,000 additional vulnerable women, while adaptive social protection will be strengthened through initiative climate adaptive measures under a core workfare program. In addition, access to financial services for women entrepreneurs will increase by at least 15% through the Bangladesh Bank’s targeted refinancing scheme.

The initiatives under the program are expected to generate significant micro-level outcomes, including enhanced productivity and efficiency, increased female labour force participation, and greater poverty reduction—leading to positive macroeconomic effects and contributing to inclusive economic growth.

ADB is a leading multilateral development bank supporting sustainable, inclusive and resilient, growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.