Economic Relations (As on 8 April 2025)

Economic Cooperation with Japan

The diplomatic relation between Bangladesh and Japan was established on 10^th February 1972. One of the most important aspects of this multifaceted relationship is the economic cooperation with Japan which has been growing over the span of past more than five decades. The bilateral relationship was elevated to ‘Comprehensive Partnership’ in 2014 and further upgraded to ‘Strategic Partnership’ in 2023. With joint efforts, along with the ever-expanding bilateral relationship, the economic cooperation with Japan has also been further diversified and deepened over time. Japan is the single largest bilateral development partner of Bangladesh. Japanese economic assistance to Bangladesh encompasses a wide range of cooperation in various sectors. The soft loan that we receive from Japan is concessional in nature with one of the lowest interest rates and favorable repayment period of thirty years including ten-year grace period.

Japanese development assistance

The Japanese development assistance for Bangladesh is mainly channeled through Japan International Cooperation Agency (JICA) which opened their office in Bangladesh in 1973. Their support has always been appreciated by the Government and people of Bangladesh. Now, in the context of Bangladesh’s upcoming graduation from LDC status in 2026, the financial and technical contributions from a friendly country like Japan will continue to help our development endeavors. Bangladesh receives ODA support from Japan in various important sectors including infrastructure, energy, transport, agriculture, water & sanitation, environment, health, education, urban & rural development, human resource development, etc. Their support comes in the form of loan, grant and technical assistance as well as dispatching of Japanese experts and volunteers.

Some basic information:

• Japan is the largest bilateral development partner of Bangladesh.
• Diplomatic relationship was established on 10^th February 1972.
• JICA Bangladesh office was established in 1973 and the first Japanese ODA loan to the Bangladesh was also made that same year.
• Bilateral relationship was elevated to ‘Comprehensive Partnership’ in 2014.
• Upgraded to ‘Strategic Partnership’ in 2023 with commitment of further diversification and deepening of the economic cooperation between the two friendly countries.
• Since independence so far, Japan has committed to provide ODA support in Japanese Yen equivalent to about US$ 32.62 billion in total as Project Aid, Food Aid and Commodity Aid to Bangladesh in the form of grants, loans and technical assistance.
• It may be mentioned that, apart from project-based ODA assistance, Bangladesh has also received budget support of about USD 910 million loan from Japan in three different years to mitigate the macroeconomic crisis due to Covid-19 pandemic, Ukraine-Russia war and other reasons. The approximate amounts were USD 320 million in 2020, USD 365 million in 2021 and USD 225 million in 2023.
• Currently, a total of 75 Japanese ODA assisted projects are being implemented in Bangladesh which includes 24 loan projects, 11 grant aid projects, and 40 technical assistance projects supported by JICA.

Official Development Assistance (ODA) Loan Projects:

There are 24 ongoing Loan projects including Matarbari Ultra Super Critical Coal-Fired Power project, Dhaka-Mass Rapid Transit Development project, Matarbari Port Development project, Jamuna Railway Bridge Construction project, Hazrat Shahjalal International Airport Expansion Project, etc.

Grants Aided Projects:

Total 11 Grant assisted projects are ongoing including the Project for Human Resource Development Scholarship (JDS Fellowship program), Improvement of Fish Landing Center of Bangladesh Fisheries Development Corporation in Cox’s Bazar District, Fourth Primary Education Development Programme (PEDP IV), Improvement of Meteorogical RADAR Systems, Ground Water Investigation & Development of Deep Ground Water Source in Urban and Rural Areas, Improvement of Rescue Capacities in the Coastal and Inland Waters, etc. Recently a grant agreement for the ‘Project for the Improvement of Equipment for Air Pollution Monitoring’ has been signed on 3 February 2025.

Technical Assistance Projects:

There are 40 ongoing Technical Assistance projects including ICT Engineers Development for the Promotion of ICT Industry & New Innovation, Capacity Improvement for Air Quality Control, Capacity Development in Relation to Ship Recycling Yard & TSDF Development, Capacity Enhancement on Formulation and Implementation of Local Disaster Risk Reduction Plan, Strengthening Capacity of City Corporations, Capacity Development on Operation Maintenance & Management in Matarbari Port, Fisheries Livelihood Enhancement in the Coastal Areas of the Bay of Bengal, Dhaka Integrated Traffic Management, Improving Ground Handling Capacity at Hazrat Shahjalal International Airport, Strengthening the Inspection Regulatory and Coordinating Function of Bangladesh Food Safety Authority, Strengthening Health Care Systems for Preventing Non-communicable Diseases, Strengthening Public Investment Management System (Phase 2), etc.

Recent list of projects according to JICA’s ODA loan packages

JDS Fellowship program

The main objective of the Project for Human Resource Development Scholarship (JDS) is to enhance the capacity of Bangladesh Civil Service officials, Bangladesh Bank officials and Bangladesh Judicial Service officials and thus contribute towards the socio-economic development of Bangladesh. Starting since 2001 so far, a total of 537 JDS fellows have been dispatched to Japan to study Master’s and 21 fellows for PhD courses under this JDS fellowship program. At present, total 71 officials of Bangladesh are pursuing their studies at 11 universities (13 graduate schools) in Japan, out of which 60 officials in Master’s and 11 officials in PhD degrees.

Japan Overseas Cooperation Volunteer (JOCV)

Japan dispatches experts as volunteers under Japanese Overseas Cooperation Volunteers (JOCV) program which have been playing an important part in Japan’s development assistance programs in Bangladesh. It also helps transfer of technology and technical know-how among the professionals of Bangladesh. Starting since 1973, despite a gap of seven years (2016-2023), so far 1,288 JOCVs have been dispatched to work in various fields of Bangladesh including healthcare, education, agriculture, engineering, ICT and sports.