ADB Approves $250m to Boost Social Protection

The Asian Development Bank (ADB) has approved a $250 million loan to help Bangladesh strengthen and modernise its social protection system, aiming to improve efficiency, expand coverage, and better support vulnerable groups.

The funding will support Subprogram 2 of the Second Strengthening Social Resilience Program, which focuses on both protective and preventive measures to reduce poverty, vulnerability, and social exclusion, according to an ADB statement issued on Thursday.

The programme places strong emphasis on improving system management, widening the reach of safety nets, and enhancing support mechanisms for disadvantaged communities. It also seeks to make social protection more adaptive in the face of economic and climate-related shocks.

ADB Country Director for Bangladesh Hoe Yun Jeong described the initiative as a key step in the country’s transition toward a more inclusive and resilient welfare system.

He said the reforms would expand support for vulnerable groups, particularly women, while introducing contributory protection schemes designed to reduce long-term fiscal pressure and ensure sustainability.

“ADB is proud to partner with Bangladesh in building a system that is more efficient, adaptive, and better equipped to promote inclusive growth and shared prosperity,” he added.

As part of the programme, the widow allowance scheme will be expanded to cover at least 250,000 additional women. Climate-responsive social protection measures will also be strengthened through a core workfare programme.

The initiative further aims to boost women’s economic participation by increasing access to financial services. Under a targeted refinancing scheme by Bangladesh Bank, access to finance for women entrepreneurs is expected to rise by at least 15 percent.

ADB expects the reforms to deliver tangible benefits at the grassroots level, including higher productivity, improved efficiency, and greater female labour force participation. These gains are projected to contribute to sustained poverty reduction and support broader, inclusive economic growth.