DHAKA:  The World Bank approved a $250 million, which is equivalent to Tk 25 crore, development policy operation to help the Government of Bangladesh strengthen its capacity to create more, better-paid and quality jobs in a rapidly changing environment.

The Programmatic Jobs Development Policy Credit aims at supporting Bangladesh develop a stronger policy and institutional framework to address barriers to creating more and better jobs for citizens, including women, youth and the vulnerable population.

The credit from the World Bank’s International Development Association (IDA) has a 30-year term, including a five-year grace period.

IDA approved the project on Thursday (December 13).

Despite Bangladesh’s robust economic growth, the pace of job creation has slowed in recent years, and almost stalled in the readymade garments sector.

The growth rate for jobs fell to 1.8 percent in 2010-16 from 2.7 percent in 2003-10. Women, workers in lagging regions, and youth in particular face challenges in accessing quality jobs. Climate change has exacerbated this jobs challenge, underscoring the need to significantly increase employment in the non-agriculture sector.

To promote large-scale employment in diverse manufacturing sectors, the reform program will help improve the investment environment, lift barriers to doing business, and modernize customs and trade facilitation. The program will also help implement amendments to the labor law and reform the pensions program to ensure works are protected.

The World Bank was among the first development partners to support Bangladesh following its independence. The World Bank has since committed more than $30 billion in grants and interest-free credits to the country. Bangladesh currently has the largest IDA program totaling $12.2 billion.

BDST: 2146 DEC 13, 2018

AH