Govt seeks foreign aid for rehabilitation

The interim government has actively sought foreign loans to support its flood rehabilitation efforts in the wake of the ongoing devastating floods that have ravaged 11 districts in the country’s eastern region.

To aid in the reconstruction of the flood-affected regions of eastern and southeastern Bangladesh, the government is negotiating with development partners, including the Asian Development Bank (ADB) and the World Bank.

The extensive destruction caused by the floods has had a severe impact on housing, infrastructure, the rural economy, small businesses, and farmers, with total losses estimated at Tk20,000 crore.

Over 18 million people have been affected by the severe monsoon conditions, with more than 1.2 million families trapped as flash floods submerged large areas, according to a UN report.

A senior official from the Economic Relations Division (ERD) said that the government is pursuing a $300 million loan from the ADB for flood rehabilitation based on initial damage assessments. Discussions with the World Bank are also underway, though no formal request has yet been made.

Agriculture Secretary Dr Mohammad Emdad Ullah Mian confirmed that extensive damage to agriculture is still being assessed.

He said that the government has already held several meetings with authorities and stakeholders to take steps towards agricultural recovery and farmer rehabilitation.

“Projects are being prepared to mitigate economic losses in the affected areas. The government has also distributed seeds, fertilisers, and cash to farmers to help them resume their work as soon as the floodwaters recede,” he mentioned.

Agro-economist and researcher Dr Jahangir Alam Khan highlighted that this year's floods have caused significant damage, particularly in the northeastern and eastern regions.

He estimated that losses in small businesses and agriculture total around Tk10,000 crore, with the agricultural sector alone suffering approximately Tk5,000 crore in losses. Fisheries and livestock have incurred further losses of about Tk2,000 crore.

Jahangir Alam urged the government to establish a committee to assess the damage and allocate around Tk10,000 crore in budgetary assistance to the affected areas.

He also called for cash subsidies and agricultural inputs for farmers, along with food aid for fish, cattle, and goats.

Additionally, he suggested releasing fish fry into ponds, haors, and baors, and introducing agricultural insurance to provide compensation for future damages.

Experts have warned that the overall financial loss due to the floods has surpassed Tk20,000 crore.

Heavy rains and landslides from upstream have damaged agriculture in 24 districts, affecting 541 unions, municipalities, and 86 upazilas in 12 districts within the Chattogram, Sylhet, and Khulna divisions.

In addition to agriculture, fisheries, and livestock, homesteads, infrastructure, and trade have also suffered significant damage, particularly in small and micro businesses across rural areas.

Financial losses in non-agricultural sectors at the district level have exceeded Tk15,000 crore, according to experts.