DHAKA, Dec. 11 (Xinhua) -- The Asian Development Bank (ADB) will provide a policy-based loan (PBL) of 600 million U.S. dollars to the government of Bangladesh, with a package of structural reforms supporting the mobilization of domestic resources and public investment projects, developing private sector, reforming state-owned enterprises, and promoting transparency and good governance.
"The ADB's PBL promptly responds to Bangladesh's immediate development financing needs following the political transition. The reforms target improvements in economic management and governance as well as economic diversification and competitiveness," ADB Regional Lead Economist Aminur Rahman was quoted as saying in a statement on Wednesday.
"The ADB's program was developed in close collaboration with the International Monetary Fund, World Bank, and other development partners," the economist added.
The Manila-based lender said Bangladesh has been struggling with revenue mobilization, as it possesses the lowest tax-to-gross domestic product ratio in the world, at only 7.4 percent.
This PBL will help Bangladesh introduce key policy actions with the aim of increasing domestic resource mobilization while improving transparency and accountability.
The program includes digitalization and green initiatives, rationalization of tax incentives and exemptions, and measures to assist taxpayers in boosting tax morale. ■
