US Promises $202 Million Aid Boost Bangladesh From Crisis

The United States has pledged an additional $202 million in aid to Bangladesh, emphasizing support for inclusive economic growth and institutional development. This announcement came during a visit by a six-member US delegation led by Deputy Under Secretary of the Treasury Department Brent Neiman to Dhaka on Sunday.

This is the first US delegation visit since Nobel laureate Muhammad Yunus took office as Chief Adviser of the interim government last month, following the removal of Prime Minister Sheikh Hasina amid deadly protests. Yunus, addressing the country last week, highlighted Bangladesh’s urgent need for $5 billion in aid to stabilize its economy, which has been hit hard by rising fuel and food import costs due to the Ukraine war. Last year, Bangladesh also sought a $4.7 billion bailout from the International Monetary Fund (IMF).

The new aid, announced by the US Agency for International Development (USAID), is part of a broader agreement signed in 2021, which committed a total of $954 million through 2026, of which $425 million has already been disbursed. The grant aims to bolster governance, social and economic opportunities, and resilience.

During their visit, the US delegation, which included Donald Lu, assistant secretary for South Asia, discussed various issues with interim government officials, including Foreign Affairs Adviser Mohammad Touhid Hossain and Finance Adviser Salehuddin Ahmed. They also addressed economic reforms, investment, labor issues, and the Rohingya crisis. The US reaffirmed its commitment to supporting Bangladesh’s efforts in these areas and looked forward to Yunus’s participation in the UN General Assembly in New York.