The World Bank (WB) has committed $2.3 billion in financial aid to Bangladesh for the fiscal year 2024-25. The funds will support critical reforms in the country’s financial sector and assist in economic recovery following recent devastating floods.

This was confirmed during a meeting between Martin Raiser, World Bank Vice-President for South Asia, and Professor Muhammad Yunus, Chief Adviser to Bangladesh’s interim government, in Dhaka on Thursday.

The loan is part of the World Bank’s broader strategy to assist Bangladesh in stabilizing its economy while addressing long-standing structural issues, such as inefficiencies in the financial system and widespread corruption. “Count on us. According to a press release from the Chief Adviser’s office, we’re ready to help,” Raiser assured Yunus, responding to the interim government’s request for support in economic reforms.

The World Bank’s financial package will target several key areas. Raiser outlined that the bank will support banking, taxation, and customs reforms. Additionally, the funds will aid in digitizing various industries, a move expected to modernize Bangladesh’s economic infrastructure and enhance productivity.

Raiser’s discussions with Yunus also highlighted the need to combat corruption and streamline the financial system. Yunus noted that the interim government, installed following a student-led mass uprising earlier in the year, has a popular mandate to initiate widespread reforms. These reforms aim to “give Bangladesh a new start,” Yunus said, emphasizing that this period represents a pivotal “season of reforms” for the country.

Yunus stressed that the interim government is focused on expanding Bangladesh’s economic base beyond its dominant garment sector. To this end, the government plans to implement International Labour Organization (ILO) conventions as part of its labor reforms to boost investor confidence and expand Bangladesh’s appeal to foreign investors.