Japan will provide Official Development Assistance (ODA) loan of up to 50 billion yen” equivalent to around US$ 312 million” to support the Bangladesh government’s efforts to strengthen fiscal management, improve the investment environment, and ensure stable energy supply, which are essential for sustaining economic stability, reform momentum, and long-term resilience.

The support, co-financed with the Asian Development Bank (ADB), aims to help mitigate the socio-economic impact of recent global challenges, including rising energy prices and uncertainty in energy supply caused by the deterioration of the situation in the Middle East, reports UNB.

Economic Relations Division Secretary Md Shahriar Kader Siddiky and Ambassador of Japan to Bangladesh Saida Shinichi on Tuesday signed the exchange of notes for Japan’s emergency support loan for enhancing economic resilience and stable energy supply to Bangladesh.

Following the signing of the exchange of notes, Chief Representative of Japan International Cooperation Agency (JICA) Bangladesh Office Takahashi Junko and Secretary Kader Siddiky signed the loan agreement.

Japan said it has consistently stood by Bangladesh since its independence and remains committed to working closely with the government and people of Bangladesh as a trusted partner for its “stability, prosperity, and development.”

Ambassador Saida said the signing is a clear demonstration of Japan’s unwavering partnership with Bangladesh at an important juncture.

He underlined that Bangladesh is a key partner of Japan under the Strategic Partnership between the two countries and for realising a “Free and Open Indo-Pacific” and reaffirmed Japan’s commitment to supporting Bangladesh’s stability, prosperity, and sustainable development.

This loan also has regional and strategic significance, said the Japanese Embassy in Dhaka.

It is the first Japanese ODA loan project under “POWERR Asia”, launched by Japanese Prime Minister Sanae Takaichi at the AZEC Plus Online Summit on Energy Resilience in April 2026, where Prime Minister Tarique Rahman also participated.

POWERR Asia aims to strengthen energy and resource resilience across Asia through both emergency responses and structural cooperation, including support for energy procurement, supply-chain maintenance, energy diversification, and industrial resilience.

By supporting Bangladesh’s economic and energy stability, the Japanese Embassy in Dhaka said, this loan is expected not only to help Bangladesh but to contribute to strengthening resilience of supply-chains across Asia, including those connected to Japan.

It is also expected to further promote a wide range of Bangladesh-Japan cooperation projects under the Strategic Partnership, including quality infrastructure, energy, transport, trade and investment, human resource development, and private sector cooperation.