Japan Provides $1.06 Billion Loan to Bangladesh for Budget, Railways, Education

Japan has pledged a $1.063 billion aid package to Bangladesh, coinciding with the visit of interim leader Muhammad Yunus to Tokyo, to bolster economic reforms, climate resilience, railway infrastructure, and education. The package includes a $418 million development policy loan to support Bangladesh's fiscal stability and climate-resilient infrastructure. Additionally, $641 million will be allocated to upgrade the Joydevpur–Ishwardi railway line to a dual-gauge double track, enhancing transport connectivity. Japan will also provide $4.2 million in grants to fund scholarships for Bangladeshi students, promoting educational exchange and capacity building. This financial support highlights Japan's strategic interest in Bangladesh's political and economic transition and its commitment to strengthening bilateral relations. The visit included a high-profile meeting between Yunus and Japanese Prime Minister Shigeru Ishiba, underscoring the importance of this partnership.