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Rohingya crisis

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  PM seeks OIC support to resolve Rohingya crisis Prime Minister Tarique Rahman today sought support from member states of the Organization of Islamic Cooperation to help resolve the Rohingya crisis. He made the appeal when ambassadors and high commissioners of OIC member countries stationed in Dhaka paid a courtesy call on him at his Cabinet Division office at the Bangladesh Secretariat this afternoon, according to Prime Minister’s Deputy Press Secretary Jahidul Islam Rony. During the meeting, the envoys congratulated Tarique Rahman on assuming office as Prime Minister. The OIC member states also reaffirmed their strong commitment to standing beside Bangladesh and strengthening bilateral cooperation in several sectors, including investment, trade, education, healthcare, textiles, and the pharmaceutical industry. Rony said the Prime Minister welcomed their remarks and, on behalf of the government and the people of Bangladesh, thanked the OIC countries for their continued support. T...
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Political Uncertainty Drags Down GDP Growth

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Political Uncertainty Drags Down GDP Growth: Asian Development Bank

Political uncertainty has weighed on Bangladesh’s economic performance, slowing gross domestic product (GDP) growth and dampening domestic demand for goods and services, according to the Asian Development Bank (ADB). The impact of tight fiscal and monetary policies has further added pressure on the economy.

These observations were highlighted in the ADB’s Annual Report 2025, released Thursday.

The report notes that Bangladesh’s current political environment shares similarities with that of Nepal. Earlier, in its Asian Development Outlook (April edition) published on 10 April, the ADB projected Bangladesh’s GDP growth at around 4 percent for the текущ fiscal year, revising the forecast downward mainly due to tensions in the Middle East.

However, the outlook also points out that political uncertainty has eased following the national election, raising expectations of a gradual pickup in economic activity.

Why GDP Growth Matters
GDP growth reflects the year-on-year increase in a country’s total economic output and remains a key indicator of overall economic health. It measures the total value of goods and services produced within a country over a specific period, typically a year.

While higher GDP growth often leads to increased income and economic activity, it does not always translate into improved living standards. The report stresses that the benefits of growth must reach low-income and marginalised populations to ensure inclusive development.

$5.21 Billion in Commitments
The ADB reported total financial commitments of $5.21 billion to Bangladesh in 2025. Of this, $2.57 billion was provided in loans and grants, while the remainder came through co-financing arrangements with private sector partners and other development institutions.

Banking Sector Challenges
The report identifies the banking sector—still the backbone of the financial system—as a key area of concern. Persistent governance weaknesses, inadequate supervision, and capital shortages have limited its effectiveness and inclusivity.

As a result, access to credit remains constrained, particularly for small and medium-sized enterprises, while many households continue to face barriers to financial inclusion.

To address these challenges, the ADB extended $500 million in support in 2025. The funding is aimed at strengthening regulatory oversight, improving governance and asset quality, and modernising liquidity management.

The programme is also expected to promote digitalisation, expand access to affordable finance, boost private sector growth, and enhance overall financial stability.

Beyond Bangladesh, the ADB has supported banking sector reforms in Sri Lanka as well, focusing on improving asset quality, capital adequacy, liquidity, and the regulatory capacity of central banks.

Broader Support Initiatives
The report also highlights ADB financing for improvements in Bangladesh’s transport infrastructure. 

In addition assistance continues to be provided to various programs to sustain the livelihoods to Rohingya displaced from Myanmar.

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