US promises more aid for Bangladesh’s revival

 The six-member delegation was led by Treasury Department deputy under-secretary Brent Neiman

• Eastern Eye
• 18 September, 2024

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By: Eastern Eye

THE UNITED STATES is committed to supporting Bangladesh’s inclusive economic growth, institution building and development and will provide an additional $202 million (£153.4m) of aid, a US delegation said during a visit to Dhaka last Sunday (15).

 The six-member delegation was led by Treasury Department deputy under-secretary Brent Neiman. It is the first US visit since Nobel laureate Muhammad Yunus’s interim government took office last month, following the ousting of prime minister Sheikh Hasina. 

 Bangladesh last year sought a $4.7 billion (£3.5bn) bailout from the International Monetary Fund (IMF). 

 The United States Agency for International Development (USAID) said it would provide a $202m grant to promote good governance, social, human and economic opportunity and resilience, in a deal signed last Sunday in Dhaka.  

It follows a 2021 agreement where USAID pledged $954m (£724.6m) between 2021 and 2026, of which $425m (£322.8m) had already been provided. 

 In a statement released on its Facebook page following the meeting with Yunus, the US embassy emphasised its readiness to support Bangladesh in its pursuit of a more “equitable and inclusive future”. 

 Yunus sought US support to help rebuild Bangladesh, carry out essential reforms to the judiciary, police and financial institutions and to recover assets stolen by the previous regime, according to a statement from his office. 

 The visiting US delegation expressed Washington’s willingness to support these reform efforts, offering both technical and financial assistance, the statement said.  

The talks also covered economic reforms, investment, labour issues, the Rohingya crisis and Yunus’s upcoming visit to New York for the UN General Assembly. The US visitors also held discussions with key members of the interim government, including foreign affairs adviser Mohammad Touhid Hossain, finance and commerce adviser Salehuddin Ahmed and Bangladesh Bank governor Ahsan Mansur.  

Donald Lu, assistant secretary for South Asia, who arrived in Dhaka after wrapping up his India tour, was part of the delegation.  

The US embassy said that it reaffirmed its commitment to collaborating with Bangladesh on expanding economic opportunities, building institutional capacity, upholding human rights and addressing climate risks.  

In a televised address last week, chief adviser Yunus said the government was appealing for $5 billion in aid to help stabilise an economy that has been struggling since the Ukraine war sharply increased the cost of fuel and food imports. Bangladesh is under immense pressure to clear overseas purchase bills, particularly for essential imports. In response, the finance ministry has entered discussions with Russia to settle both advance payments and outstanding balances related to the Rooppur nuclear power plant project.  

Yunus also announced plans to establish six new commissions aimed at reforming critical sectors, including the constitution, the electoral system, the judiciary, the police, the Anti-Corruption Commission and public administration. 

 These commissions will be tasked with investigating specific areas and offering recommendations for reforms. 

“We plan to expand this approach by forming additional commissions to tackle other important matters,” Yunus said. The six commissions are expected to be operational by October 1, and to complete their work within three months. 

 In the final phase, a detailed outline of the proposed reforms will be developed after a consultation period of three to seven days, he said. (Reuters)