HE Dr Muhammad Al Jasser, Chairman of the Islamic Development Bank (IsDB) Group, began his official visit to Bangladesh with high-level discussions focused on the country’s development priorities, energy security and future cooperation with the IsDB Group. The meetings reaffirmed the shared commitment of Bangladesh and the IsDB Group to deepen their development partnership and pursue cooperation that supports sustainable growth and economic resilience.
HE Dr Al Jasser first held discussions with HE Amir Khasru Mahmud Chowdhury, Bangladesh’s Minister of Finance and Planning and IsDB Governor. The meeting reviewed the long-standing Bangladesh–IsDB partnership, progress across the development portfolio and opportunities to expand cooperation in areas central to the country’s growth.
The two sides discussed shaping the upcoming IsDB Group Member Country Partnership Strategy around Bangladesh’s development aspirations, national priorities and financing needs. Key areas included resilient infrastructure, energy security, transport connectivity, trade finance and private-sector development.
They also highlighted the role of the IsDB Concessional Fund in expanding access to concessional financing and discussed blended-finance approaches, sukuk and other financing instruments that could support Bangladesh’s development agenda.
HE Dr Al Jasser also met with HE Anindya Islam Amit, Minister of State for Power, Energy and Mineral Resources of Bangladesh. The discussions focused on ways to strengthen Bangladesh’s energy sector and other critical enabling infrastructure. The two sides explored opportunities to enhance energy security, expand domestic capacity and advance cleaner and more reliable energy systems through IsDB Group financing, trade finance and technical expertise.
HE Tarique Rahman, Hon’ble PM of Bangladesh, also received HE Dr Al Jasser for bilateral talks focused on deepening the long-standing development partnership between Bangladesh and the IsDB Group. During the session, HE Dr Al Jasser praised the enduring relationship between Bangladesh and the IsDB Group, built over more than five decades and reflected in over US$32 B in cumulative financing approvals.
The two leaders reviewed progress across the development portfolio and discussed how deeper cooperation could support the government’s Five-Year Strategic Framework for Reform and Development 2026–2031. Priority areas included energy and food security, transport connectivity, digitalisation, job creation, capacity development and private-sector-led growth.
The discussions also focused on the next IsDB Group Member Country Partnership Strategy for 2027 to 2031. The strategy will shape a programme of cooperation around Bangladesh’s national priorities, financing needs and long-term development aspirations. The two sides considered how the wider IsDB Group could contribute through IsDB financing, ITFC trade-finance solutions and ICIEC risk-mitigation products to mobilise resources and support sustainable economic growth.
The bilateral talks followed the signing of US$1 B in IsDB financing for the modernisation and expansion of the Eastern Refinery Project. HE Dr Al Jasser described the project as a major step toward strengthening Bangladesh’s energy security, expanding domestic refining capacity and reducing dependence on imported refined petroleum products.
Dr Mohammad Mizanur Rahman, Additional Secretary (Admin, ICT and Middle East), Economic Relations Division, Ministry of Finance, signed on behalf of the Government of Bangladesh, and Anasse Aissami, Director General, Country Operations, signed on behalf of the IsDB. The signing ceremony was witnessed by HE Tarique Rahman; HE Amir Khasru Mahmud Chowdhury, and HE Dr Al Jasser.
The US$2.5 B project comprises approximately US$1 B in IsDB financing and around US$1.5 B in contributions (including taxes, customs duty, and value-added taxes or VAT) from the government of Bangladesh.
Expected to be completed in five years, it will add 3 million metric tons of annual refining capacity, raising the refinery's total capacity to 4.5 million metric tons per annum.
The expansion will strengthen Bangladesh's energy security by increasing domestic refining capacity and reducing dependence on imported refined petroleum products. Local refining of imported crude oil is expected to save about US$394 million in foreign exchange each year.
"Today's signing marks a major milestone in IsDB's longstanding partnership with Bangladesh. By expanding domestic refining capacity, the Eastern Refinery project will strengthen energy security, reduce dependence on imported refined petroleum products, and support cleaner fuel standards. This financing will help build greater economic resilience and deliver lasting benefits for businesses, workers, farmers, and households across Bangladesh," said H.E. Dr. Muhammad Al Jasser.
The upgraded refinery will process a broader range of crude oils and produce 15 types of refined petroleum products. It is expected to support a 5% reduction in the cost of major petroleum products and enable production to meet Euro 5 standards, replacing the current Euro 2 grade.