IsDB to provide $4b to $5b in next 3 years

Business Eye Report

The Islamic Development Bank (IsDB) is likely to come up with an overall support of around $4 billion to $5 billion to Bangladesh in various sectors for the next three years under its Member Country Partnership Strategy (MCPS) for the 2024-26.
Head of IsDB Regional Hub Muhammad NassisSulaiman informed this to reporters while replying to their queries after holding meeting with Adviser to the interim government on the Ministries of Finance and Commerce DrSalehuddin Ahmed at his office at Bangladesh Secretariat yesterday.
"As part of the Member Country Partnership Strategy (MCPS), the part of the plan is really for the next three years with a support of around $4 to $5 billion," he said.
When asked whether there was any discussion about increasing the limit for lending to Bangladesh by the International Islamic Trade Finance Corporation (ITFC), a trade financing arm of the IsDB Group, for purchasing fuel oil, Sulaiman said of course, it was a part of the overall discussions with the government.
The IsDB's MCPS needs to be framed in details for the next couple of years to fix the entities support, including ITFC's support to Bangladesh.
"So, we look forward really to be able to provide support in infrastructural development … to address some of the issues relating to climate change facing the country," added the Head of IsDB Regional Hub.
Talking about the IsDB Group intervention, he said, "Of course, the government is also looking forward to seeking support from the bank for overall engagement, particularly we'll also discuss it with the ITFC, how the support can be further developed and can be moved forward."
Mentioning that the IsDB would continue to support the socio-economic development of Bangladesh, Sulaiman said "Considering the IsDB's strategies and the government's priorities, we hopefully will be able to support in terms of resources and collaboration with other development partners as well."
Finance Adviser DrSalehuddin Ahmed said since IsDB is a multilateral development partner of Bangladesh, they are providing various kinds of assistance to the country in the health sector, building cyclone shelters etc.
He said the government has requested them to support in rebuilding the damaged rural roads affected due to recent devastating flood in the country.
He said they have already made a survey in Sylhet in this regard.
"Overall, they (IsDB) will support us in rebuilding the damaged rural roads. They are already supporting us in the health sector, constructing bridges, in physical infrastructures …," he added.
Regarding support in purchasing fuel oil, the adviser said the IsDB would explore the possibilities for boosting the existing cooperation in consultation with the other development partners.
"We've requested them to provide us fund and they would assess the possibilities. Until, it is finalized, nothing can be said as the IsDB Board meeting would be held in December," he added.
The finance adviser said the Jeddah-based lending agency would provide support to Bangladesh in long-term as they would provide support in line with the country's demands for projects. "Overall, the IsDB would support us,"
About the MCPS, he informed that the government would assess the potential projects and then the IsDB would consider those for moving forward.
Bangladesh Member Country Partnership Strategy (MCPS) (2024-2026), titled: "Supporting Sustainable Economic Growth and Resilience'' was launched on 29th April, 2024.
Bangladesh MCPS provides broad strategic directions and sectoral focuses for IsDB's engagement in Bangladesh.
The MCPS focuses on building sustainable infrastructure for driving industry through support for energy, transport, information and communications technology (ICT), water and sanitation, and enhancing future competitiveness of Bangladesh through support for education, health, agriculture and nutritional security with complementary cross-cutting support on climate change mitigation and adaptation, women and youth empowerment, capacity development, and enhancing financial market depth and access to finance through Islamic finance.