Japan has pledged $1.063 billion in financial assistance to Bangladesh, including support for the national budget, railway infrastructure, and educational grants, following summit-level talks in Tokyo between the two nations’ leaders.

Chief Adviser of the Interim Government of Bangladesh, Professor Muhammad Yunus, and Japanese Prime Minister Ishiba Shigeru led their respective delegations during the bilateral discussions held on Friday.

According to a joint statement issued after the meeting, the aid package includes:

• $418 million in budget-support credit under a Development Policy Loan, aimed at backing Bangladesh’s economic reforms and climate resilience efforts.

• $641 million in loans for upgrading the Joydevpur–Ishwardi railway section to a dual-gauge, double-track system.

• $4.2 million in grants for scholarships, supporting human resource development.

The agreements were formalized through the exchange of notes and a series of Memoranda of Cooperation (MoC) and Memoranda of Understanding (MoU) across various sectors.

The two sides reaffirmed their Strategic Partnership and shared vision for a Free and Open Indo-Pacific (FOIP), committing to peace, regional stability, multilateralism, democracy, and the rule of law.

Japan’s Prime Minister expressed his government’s full support for the Yunus-led interim government and its ongoing reforms, describing Bangladesh’s peaceful transition as a “nation-building effort.”

In response, Prof Yunus expressed gratitude for Japan’s enduring support, particularly through the Bay of Bengal Industrial Growth Belt (BIG-B) Initiative and the Moheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI).

The two leaders welcomed progress in several joint initiatives, including the implementation of a One Stop Service (OSS) system via BIDA to ease business operations, the installation of prepaid gas meters, the launch of a pilot information security project, the establishment of a battery-run cycle factory, and deals within the Bangladesh Special Economic Zone (BSEZ) to facilitate Japanese investments.

They also underscored the importance of concluding the Economic Partnership Agreement (EPA) and instructed negotiators to expedite the process.

On security cooperation, both leaders welcomed Japan’s upcoming delivery of five patrol boats to the Bangladesh Navy under its Official Security Assistance (OSA) framework. They also expressed hope for an early conclusion of an Agreement on the Transfer of Defence Equipment and Technology.

In addition to economic and security cooperation, the summit also focused on strengthening people-to-people ties, expanding cultural exchange, and promoting the movement of skilled human resources between the two countries.