World Bank grants $250M to boost Bangladesh public sector

The World Bank’s Board of Executive Directors has approved a $250 million financing package to enhance public sector performance in Bangladesh by promoting transparency, accountability, and efficiency in key government agencies.

The Strengthening Institutions for Transparency and Accountability (SITA) Project will support the government’s ongoing reforms to modernize critical public sector functions. These reforms aim to improve data transparency, domestic revenue collection, public investment management, procurement, and financial oversight.

The project targets five major agencies: the Bangladesh Bureau of Statistics, National Board of Revenue, Planning Division, Bangladesh Public Procurement Authority, and the Office of the Comptroller and Auditor General.

Gayle Martin, World Bank Interim Country Director for Bangladesh, said, “This investment will leverage digitization to enhance transparency and reduce corruption, helping Bangladesh build modern institutions fit for a growing economy.”

Martin added, “By improving the quality and accessibility of public services, the project will also strengthen public trust in government institutions.”

The SITA project will streamline operations, improve service delivery, and provide better access to reliable public data, essential for transparent decision-making and policy formulation. It will modernize tax administration to increase compliance and revenue mobilization, and expand electronic government procurement (e-GP) systems. Additionally, the project will digitize and strengthen public audits to ensure efficient use of resources.

The World Bank and the Bangladesh government are also preparing a development policy credit, expected to be discussed later this month, which will support reforms in revenue mobilization, the banking sector, data dissemination, investment management, procurement, auditing, and social program delivery.

According to Souleymane Coulibaly, World Bank Lead Country Economist and Task Team Leader for the project, “By targeting five critical public institutions, the project will significantly boost government effectiveness—a vital factor for sustainable economic growth.”

He added, “Together with the upcoming policy credit, this effort will provide the government with the necessary tools to improve public financial management and service delivery.”

Since Bangladesh’s independence, the World Bank has been a key development partner, committing over $45 billion in grants and concessional credits. Recently, Bangladesh has become one of the largest recipients of the World Bank’s concessional IDA credits.