The government has signed a $250 million development policy operation with the World Bank to support reform efforts to create "large-scale, better-paid and inclusive" jobs.
The Programmatic Jobs Development Policy Credit-the first of a series of three planned operations-will help Bangladesh build a stronger policy and institutional framework to create faster and more inclusive jobs for citizens, including women, youth, overseas migrants and vulnerable members of the population, according to a news release from the World Bank.
"Jobs are cornerstone for development. Bangladesh needs to create more and better jobs, particularly in the manufacturing sector to achieve its growth aspirations," World Bank Country Director Qimiao Fan said at the signing ceremony in Dhaka on Wednesday.
"This program will support reforms that will address key challenges in creating inclusive and quality jobs. This will help the government implement policies to modernize trade, stimulate investment, strengthen social protection systems for workers and help vulnerable people access jobs," he said.
Finance Minister AHM Mustafa Kamal admitted that the government could not achieve much progress in past five years but the World Bank assistance will help it create more jobs as pledged for the youth in the ruling Awami League's election manifesto.
The World Bank-funded program aims to help leverage Bangladesh's comparative advantage in the manufacturing sector while stimulating investment, making doing business easier, and modernizing customs and trade facilitation, according to the release. Economic Relations Secretary Monowar Ahmed and Fan signed the agreement on behalf of the government and the World Bank, respectively.
The credit is from the World Bank's International Development Association (IDA), has a 30-year term, including a five-year grace period, and carries a service charge of 0.75 percent and an interest of 1.25 percent, the release said.
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