Japan and Bangladesh on Friday exchanged notes under which Tokyo will provide $1.063 billion to Dhaka in budget support, railway upgradation, and grants.

The announcement came after chief adviser Professor Muhammad Yunus and Japanese prime minister Shigeru Ishiba held a bilateral meeting in Tokyo in the morning.

Of the total assistance, Japan will provide $418 million in Development Policy Loan for Bangladesh's economic reforms and climate resilience.

Tokyo will also lend 641 million dollars for upgradation of Joydevpur-Ishwardi railway track into a dual-gauge double railway track and another 4.2 million dollars as grants for scholarships.

Chief Adviser's Deputy Press Secretary Abul Kalam Azad Majumder confirmed this to reporters.