B Mirror Report: The Asian Development Bank (ADB) has approved a $250 million loan to support Bangladesh in operationalizing and institutionalizing key reforms aimed at improving the efficiency, coverage, and effectiveness of the country’s social protection system.

The initiative, known as Subprogram 2 of the Second Strengthening Social Resilience Program, seeks to reinforce both protective and preventive social protection measures to reduce vulnerability, exclusion, and poverty risks.

According to an ADB press release, the program will focus on improving system management, expanding coverage and scope, and strengthening protection for vulnerable populations.

“This program marks an important milestone in Bangladesh’s transition toward a more modern, inclusive, and resilient social protection system,” said Hoe Yun Jeong.

He added that by expanding coverage for vulnerable groups especially women and introducing contributory protection mechanisms, the reforms will help reduce poverty risks while supporting long-term economic stability. “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 said.

Key reforms under the program include the development of contributory social protection schemes, which are expected to ease long-term fiscal pressure. The widow allowance program will be expanded to support at least 250,000 additional vulnerable women.

Adaptive social protection will also be strengthened through climate-responsive measures under a core workfare program. In addition, access to financial services for women entrepreneurs will increase by at least 15% through targeted refinancing schemes by Bangladesh Bank.

The initiatives are expected to generate strong micro-level outcomes, including improved productivity and efficiency, higher female labor force participation, and greater poverty reduction ultimately contributing to positive macroeconomic impacts and inclusive economic growth.

Founded in 1966, the ADB is a leading multilateral development bank owned by 69 members, including 50 from the Asia and Pacific region, and works to promote sustainable, inclusive, and resilient development.