World Bank Commends Bangladesh’s Economic Reforms

Johannes Zutt, the newly appointed World Bank Vice President for South Asia, has praised the caretaker government’s economic reform initiatives and reiterated his strong support for Bangladesh’s inclusive development efforts.

During a courtesy meeting with Chief Adviser Professor Muhammad Yunus on Monday night at the State Guest House Jamuna, Zutt said, “You and your team are doing an outstanding job. The way you’re tackling the complex challenges in the financial sector is commendable.” Jean Pesme, the new Country Director for Bangladesh and Bhutan, also attended the meeting.

Recalling his previous tenure in Bangladesh (2013–2015), Zutt expressed his deep affection for the country. “We are ready to move forward together and share the aspirations of the people of Bangladesh,” he said. He also paid tribute to the students who died during last year’s July movement, calling it “a deeply emotional chapter for everyone connected with Bangladesh.”

Professor Yunus, in response, said, “When we took office, the situation was like a post-earthquake disaster zone. We had no prior experience, but the support from development partners gave us confidence.” He emphasized the historic role of the youth in the July movement and said, “They’ve inspired the nation with a new dream. The contribution of women, in particular, was remarkable. Their sacrifices must not go in vain.”

Urging a broader perspective on Bangladesh’s potential, Yunus said, “Bangladesh is more than just a geographic boundary. Its progress can drive regional development in South Asia. With our access to the sea, a young workforce, and manufacturing capacity, we’ve invited global industries to set up factories here. We are ready to provide all necessary support to make Bangladesh a regional production hub.”

Zutt praised Yunus’ efforts in empowering women and noted that the World Bank-supported girls’ scholarship program in Bangladesh has become a model for other countries. He also revealed that the World Bank committed over $3 billion in financing to Bangladesh last fiscal year and pledged continued support at a similar level over the next three years.

Lutfes Siddiqi, Special Envoy for International Affairs to the Chief Adviser, was also present at the meeting. He shared updates on the development of Chattogram Port, noting improvements in container handling at the New Mooring Container Terminal (NCT) due to new management systems. He further stated that Bangladesh witnessed a significant increase in net foreign direct investment (FDI) during the January–March quarter of 2025, driven by intra-company loans and strong equity investments.