AfDB to provide $250 million to Bangladesh to strengthen social protection system

0

Bangladesh will receive a $250 million loan from the Asian Development Bank under an agreement signed on Tuesday with the Manila-based aid agency, according to a press release.

The fund will be used to further improve the social protection system in Bangladesh to support the vulnerable population in the face of socio-economic challenges.

Economic Relations Division Secretary Fatima Yasmin and AfDB Country Director Edimon Ginting signed the agreement virtually on their respective sides, the press release said.

The program aims to accelerate reforms by increasing the coverage and effectiveness of social protection, improving the financial inclusion of disadvantaged people and strengthening the response to diversified protection needs.

The loan is the second sub-programme of the Social Resilience Building Program approved in 2021, which has contributed to the implementation of institutional and policy reforms that have strengthened the inclusiveness and responsiveness of social protection in Bangladesh.

AfDB Country Director Ginting said the integrated social protection program would improve the management of social safety nets, deepen financial inclusion, address needs based on demographic, geographic, age, gender and other diversities, and expand the coverage and effectiveness of social protection.

The reforms supported under the program will help improve efficiency through the digitization and integration of systems as well as the harmonization of government social protection programs.

The reforms will help Bangladesh integrate at least 80% of social protection programs with cash benefits into a standardized and integrated management system with connection to the G2P platform by June 2023.

At least 60% of social protection cash benefits will be paid to disadvantaged women, and the fragmentation of social protection programs will be reduced in three ministries. The number of active mobile financial services accounts will increase by 5% per year.

At least 50 mobile clinics will start operating in 10 municipal corporations. At least one social insurance scheme (contributory protection scheme) will be launched on a pilot basis by 2023.

Share.

Comments are closed.