Embassy of the People’s Republic of Bangladesh, Tokyo

Economic Relations (As on 8 April 2026)

Economic Cooperation with Japan

Diplomatic relations between Bangladesh and Japan were officially established on 10 February 1972, shortly after Bangladesh's independence. Japan was one of the first countries to recognize Bangladesh, and they immediately began fostering a, now, over 50-year-old friendship that includes significant economic development partnership and cultural exchange. Economic cooperation has emerged as a cornerstone of this multifaceted partnership, steadily expanding in scope and depth. The bilateral relationship was elevated to a Comprehensive Partnership in 2014 and further upgraded to a Strategic Partnership in 2023, reflecting growing mutual trust and shared priorities.

Japan remains the single largest bilateral development partner of Bangladesh, with cooperation spanning a wide range of sectors. Japanese economic assistance – primarily in the form of concessional soft loans – features highly favorable terms, including low interest rates and extended repayment periods of up to 30 years, with a 10-year grace period. This sustained support has played a pivotal role in advancing Bangladesh’s infrastructure, economic growth, and overall development trajectory.

Japanese Development Assistance

Development assistance from Japan to Bangladesh is primarily channeled through the Japan International Cooperation Agency, which established its office in Bangladesh in 1973. Over the years, JICA’s support has been widely appreciated by both the Government and the people of Bangladesh for its consistency, quality, and impact. Bangladesh receives Official Development Assistance (ODA) from Japan across a broad range of priority sectors, including infrastructure, energy, transport, agriculture, water and sanitation, environment, health, education, and urban and rural development, as well as human resource development. This assistance is delivered through concessional loans, grants, and technical cooperation, alongside the deployment of Japanese experts and volunteers, contributing significantly to Bangladesh’s sustainable development.

Key Facts on Bangladesh–Japan Development Cooperation

* Japan is the single largest bilateral development partner of Bangladesh.

* Diplomatic relations between the two countries were established on 10 February 1972.

* The Japan International Cooperation Agency Bangladesh Office was established in 1973, the same year Japan extended its first ODA loan to Bangladesh.

* The bilateral relationship was elevated to a “Comprehensive Partnership” in 2014 and further upgraded to a “Strategic Partnership” in 2023, with a shared commitment to deepen and diversify economic cooperation.

* Since independence, Japan has committed approximately USD 33.62 billion (equivalent in Japanese Yen) in ODA to Bangladesh in the form of project aid, food aid, and commodity aid, including grants, loans, and technical assistance.

* In addition to project-based assistance, over the years Bangladesh has received around USD 1315 million in budget support loans from Japan to address macroeconomic challenges arising from the COVID-19 pandemic, the Ukraine-Russia war, and related shocks (USD 320 million in 2020, USD 365 million in 2021, USD 225 million in 2023, and USD 405 million in 2025).

* Currently, total 80 Japan-assisted ODA projects are under implementation in Bangladesh, comprising 28 loan projects, 11 grant aid projects, 38 technical cooperation projects, and 3 DRGA-CF projects supported by JICA.

Official Development Assistance (ODA) Loan Projects

Bangladesh currently has 28 ongoing ODA loan projects supported by Japan. These include major infrastructure and development initiatives such as the Matarbari Ultra Super Critical Coal-Fired Power Project, Dhaka Mass Rapid Transit Development Project, Matarbari Port Development Project, Jamuna Railway Bridge Construction Project, and Hazrat Shahjalal International Airport Expansion Project, among others. These projects play a crucial role in enhancing Bangladesh’s energy capacity, transport connectivity, and overall infrastructure development.

Grant-Aided Projects

Bangladesh currently has 11 ongoing grant-assisted projects supported by Japan. Key initiatives include the Project for Human Resource Development Scholarship (JDS Fellowship Program), Improvement of Fish Landing Centers of the Bangladesh Fisheries Development Corporation in Cox’s Bazar, Fourth Primary Education Development Programme (PEDP IV), Improvement of Meteorological RADAR Systems, Groundwater Investigation & Development of Deep Groundwater Sources in Urban and Rural Areas, Enhancement of Rescue Capacities in Coastal and Inland Waters, and the Project for Improvement of Equipment for Air Pollution Monitoring, among others. These projects support human resource development, infrastructure, environmental management, and disaster preparedness.

Technical Assistance Projects

Bangladesh currently has 38 ongoing technical assistance projects supported by Japan. Key initiatives include ICT Engineers Development for the Promotion of ICT Industry & New Innovation, Capacity Improvement for Air Quality Control, Capacity Development for Ship Recycling Yard & TSDF, Enhancement of Local Disaster Risk Reduction Planning, Strengthening the Capacity of City Corporations, Operation, Maintenance & Management Training for Matarbari Port, Fisheries Livelihood Enhancement in 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 Functions of the Bangladesh Food Safety Authority, Strengthening Health Care Systems for Preventing Non-Communicable Diseases, and Strengthening Public Investment Management System (Phase 2), among others.

These projects aim to enhance institutional capacity, infrastructure management, environmental sustainability, disaster resilience, public health, and technological innovation in Bangladesh.

DRGA-CF Projects

The Japanese government also provides Debt Relief Grant Aid–Counterpart Fund (DRGA-CF) for eligible development initiatives in Bangladesh. Currently, three DRGA-CF projects are underway: the Construction of a Dual Gauge Line parallel to the existing Meter Gauge Line in the Dhaka–Narayanganj Section, Support to the Sustainable Graduation Project, and Strengthening Institutional Capacity of BIAM for Conducting Core Courses. These projects aim to enhance transport infrastructure, social development, and institutional capacity building.

Recent list of Loan projects (Japanese Fiscal Year-wise)

JDS Fellowship Program

The Project for Human Resource Development Scholarship (JDS) aims to strengthen the capacity of officials from the Bangladesh Civil Service, Bangladesh Bank, and the Bangladesh Judicial Service, thereby contributing to the country’s socio-economic development. Since its inception in 2001, a total of 567 fellows has completed Master’s degrees and 23 fellows have undertaken PhD programs in Japan under the JDS Fellowship Program. At present, 68 Bangladeshi officials are studying at 11 universities (across 13 graduate schools) in Japan, including 60 pursuing Master’s degrees and 8 pursuing PhDs. This reflects the program’s continued and significant role in developing skilled human resources for Bangladesh.

Japan Overseas Cooperation Volunteer (JOCV) Program

The Japan Overseas Cooperation Volunteers (JOCV) program dispatches Japanese professionals to Bangladesh, playing a vital role in Japan’s development cooperation by facilitating the transfer of technology and technical expertise to Bangladeshi counterparts. Since its inception in 1973, a total of 1,288 JOCVs have been deployed across a wide range of sectors – including healthcare, education, agriculture, engineering, ICT, and sports – making significant contributions to capacity building and human resource development. This figure includes a seven-year suspension of activities between 2016 and 2023. At present, two JICA volunteers are serving in Bangladesh: one as a soccer coach at BKSP under the sports sector, and another as a trainer in the architecture field at the Housing and Building Research Institute (HBRI). In Japanese Fiscal Year 2026, JICA plans to gradually dispatch as many as ten new volunteers to Bangladesh, following the completion of their selection process, language training, and pre-departure orientation in Japan.