Dhaka: Asian Development Bank (ADB) Country Director Hoe Yun Jeong today emphasized the need for Bangladesh to advance critical reforms in revenue mobilization, non-performing loans (NPLs), and energy security. “Going forward, we expect the government will advance further critical reforms to enhance domestic revenue mobilization, resolve the issue of elevated non-performing loans, ensure energy security, and boost private sector investment,” Jeong stated.
According to Bangladesh Sangbad Sangstha, Jeong shared these insights during the launch of the Bangladesh chapter of ADB’s latest report, the Asian Development Outlook (ADO) April 2025, at the Bangladesh Resident Mission office in Agargaon. The event also featured a power-point presentation by ADB Country Economist Chandan Sapkota. Jeong stressed the importance of improving public investment management, particularly in enhancing project readiness and implementation capacities.
As a longstanding development partner, the ADB will continue to support Banglade
sh through policy-based loans, project investments, and technical assistance. “ADB will also put high importance on private sector development, resilience to natural disasters, digitization, regional cooperation, and regional public goods, as well as empowerment,” Jeong added.
He further noted that the ADB expects Bangladesh’s economic growth to moderate in fiscal year 2025 compared to FY2024, with a rebound anticipated in FY2026 due to improvements in domestic demand. Despite high inflation and tight monetary policies aimed at resolving banking sector vulnerabilities, including rising non-performing loans, the external sector is expected to see a narrowing current account deficit due to robust remittance inflows.
In the fiscal sector, the ADB anticipates the fiscal deficit to remain consistent with FY2024 levels, driven by an increase in revenue mobilization and government recurrent spending. Jeong acknowledged potential downsides to the economic outlook, such as high inflation, prolonged monetary tighteni
ng, political uncertainty, adverse weather events, and global economic slowdowns linked to U.S. tariffs.
In his closing remarks, Jeong highlighted Bangladesh’s economic resilience amidst global challenges. He urged the country to implement essential reforms swiftly to sustain higher growth, noting the importance of these reforms as Bangladesh prepares to graduate from the least developed country status in November 2026. A forthcoming joint study by ADB and the Organization for Economic Co-operation and Development will provide a roadmap for investment policy reforms and sustainable development in Bangladesh, particularly focusing on increasing trade and improving the investment climate post-LDC graduation.
Jeong concluded, “Economic growth is one part of the equation, and its sustainability is another. We reaffirm ADB’s continued support to the government in implementing necessary reforms and embarking on key projects to help the country achieve sustainable development goals.”