Japan pledges $1.063 billion to Bangladesh for economic reform, railway infrastructure upgrades, and educational grants under a new bilateral cooperation deal.
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| Japan signs $1.063B agreement with Bangladesh for budgetary reforms, Joydevpur-Ishwardi rail upgrade, and scholarships while honoring Prof. Yunus in Tokyo. Image: CH |
Dhaka, Bangladesh — May 30, 2025:
In a major boost to bilateral cooperation, Japan has committed $1.063 billion in financial assistance to Bangladesh for economic reforms, railway modernization, and education support. The agreement was formalized on Friday through an exchange of notes between the two governments, signaling a new phase of strategic engagement between Tokyo and Dhaka.
The funding includes $418 million as a Development Policy Loan, which will support ongoing economic reforms and initiatives to enhance climate resilience in Bangladesh. Additionally, $641 million has been earmarked for upgrading the Joydevpur-Ishwardi railway section into a dual-gauge double-track line, a move expected to significantly improve the capacity and efficiency of the country’s railway network. A further $4.2 million will be provided in the form of grants to fund scholarships, strengthening academic ties and human capital development.
Announcing the initiative, Chief Adviser’s Deputy Press Secretary Abul Kalam Azad Majumder emphasized that the deal reflects Japan’s enduring support for Bangladesh’s growth trajectory. The financial package will not only assist with immediate fiscal and infrastructure needs but also bolster long-term development goals.
Meanwhile, Bangladesh’s Chief Adviser Professor Muhammad Yunus was honored in Tokyo with an Honorary Doctorate Degree from Soka University in recognition of his lifelong contributions to microcredit, social business, and the empowerment of the poor. The conferment took place in a formal ceremony at the university’s conference hall, attended by faculty members, students, and dignitaries.
Following the ceremony, Professor Yunus delivered a special lecture addressing global socio-economic challenges and the role of inclusive entrepreneurship in combating poverty and inequality. His speech was met with high praise from the academic community and reinforced the global impact of his work.
Professor Yunus is currently in Japan to participate in the 30th Nikkei Forum: Future of Asia, where he is expected to engage in bilateral discussions with Japanese Prime Minister Shigeru Ishiba. The agenda includes further deepening economic ties and exploring sustainable development partnerships.
The combination of financial support and symbolic recognition underscores a robust and multifaceted partnership between Bangladesh and Japan. The initiatives announced on Friday not only reinforce economic cooperation but also spotlight shared values in education, innovation, and social progress across the Asia-Pacific region.