The United States has pledged an additional $202 million in aid to Bangladesh for its economic growth and development. This commitment was expressed by a U.S. delegation during their visit to Dhaka, reports Reuters.
The delegation, led by Deputy Under Secretary of the Treasury Department Brent Neiman, is the first from the U.S. since the interim government headed by Nobel laureate Muhammad Yunus took office on August 8.
The aid, in the form of a grant from the United States Agency for International Development (USAID), will be used to promote good governance, social, human and economic opportunity, and resilience.
$425 million US aid already given under 2021 agreement
It follows a 2021 agreement where USAID pledged a total of $954 million between 2021 and 2026, of which $425 million had already been provided.
In a televised address last week, Chief Adviser Yunus said the government was appealing for $5 billion in aid to help stabilise an economy that has been struggling since the Ukraine war sharply increased the cost of fuel and food imports. Bangladesh last year sought a $4.7 billion bailout from the International Monetary Fund.
In a statement released on its Facebook page following the meeting with Yunus, the U.S. embassy in Dhaka emphasised its readiness to support Bangladesh in its pursuit of a more “equitable and inclusive future”.
Yunus, known for his close ties with Washington, outlined the urgent challenges his interim government faces, stressing the need to “reset, reform, and restart” the economy. He also expressed his commitment to recovering stolen assets linked to the previous regime, reports the Press Trust of India.
The US was one of the first countries to welcome Yunus’ installation as leader of Bangladesh.
US-Bangladesh ties deteriorated under Sheikh Hasina
The US-Bangladesh ties deteriorated and saw its lowest ebb in recent months when former prime minister Hasina alleged that the US wanted to oust her as she declined to serve its strategic interest by compromising Bangladesh’s sovereignty. Hasina, ousted from power following a student-led agitation, fled to India, her ally.
Washington welcomed the formation of the interim government led by Yunus, says the Dhaka Tribune.
The United States has been a longstanding development partner of Bangladesh since 1972. Through the 1974 Economic, Technical, and Related Assistance Agreement, the US has contributed over $8 billion across various sectors, including democracy and governance, food security, health, education, and climate change, primarily through USAID and other US agencies, reported the Daily Star, quoting a Bangladesh finance ministry press release.
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