The Asian Development Bank (ADB) is providing a $250 million loan to strengthen Bangladesh’s social security system. The amount of money in Taka is 2 thousand 935 crore 50 lakh Taka (117.42 Taka per dollar).
ADB signed the loan agreement with the Economic Relations Department (ERD) on Monday. On behalf of the Government of Bangladesh, ERD Secretary Secretary Md. Shahriar Quader Siddiqui and ADB Country Director Edimon Ginting signed the agreement.
ADB Country Director Edmond Ginting said the Second Strengthening Social Resilience Program aims to accelerate reforms to increase protection coverage and capacity, improve financial inclusion of disadvantaged people and strengthen responses to diverse protection needs. The first phase of this program ended in June 2022.
He said this program supports the second phase of action plan of the government’s National Social Security Strategy to strengthen the protective and preventive capacity of Bangladesh’s social security system. The program will help improve efficiency in managing social protection programs, increase protection for the most vulnerable, and improve access to social protection through the introduction of contributory protection schemes. This will help reduce the risk of falling into vulnerability, exclusion and further poverty.
According to ADB, the program will integrate two cash-based protection programs for persons with disabilities to improve efficiency and effectiveness.
In addition, ADB’s assistance will increase the number of beneficiaries under the Widows’ Allowance Program and strengthen the protection of vulnerable women and transgenders by expanding the coverage of the Livelihood Assistance Program for Transgenders. Bangladesh Bank is also doubling its funding for the Small Enterprise Refinancing Scheme for Women Entrepreneurs, to expand the participation of women small business operators in financial services.
Another objective of the program is to strengthen the governance of the garment sector. In addition, it supports the formation of a tripartite committee on social protection for workers under the Ministry of Labor and Employment to support workers’ associations, employers’ associations and the country’s social insurance schemes as a key institutional mechanism for further development.
