The announcements target the persistent “skills mismatch” that leaves many graduates unprepared for the demands of a modern, technology-driven economy.
Bangladesh took a major step toward its upper-middle-income ambitions this week as the World Bank (WB) and Asian Development Bank (ADB) confirmed combined financing of more than $300 million focused on informal-sector employment, skills training, and technical education.
The announcements target the persistent “skills mismatch” that leaves many graduates unprepared for the demands of a modern, technology-driven economy.
World Bank Signs Additional Financing for RAISE Project
On February 1, 2026, the government and the World Bank signed an additional $150.75 million loan and a $0.75 million grant for the Recovery and Advancement of Informal Sector Employment (RAISE) project.
Implemented by the Palli Karma-Sahayak Foundation (PKSF), the expanded project will reach approximately 176,000 more young people with market-relevant skills training, apprenticeships, entrepreneurship development, and access to microfinance.
Total World Bank support for RAISE now stands at $350.75 million. The project, launched in 2021, has already delivered strong results: over 80 per cent of trained apprentices found employment within three months, and more than 250,000 returning migrants have been registered for reintegration support.
The new financing places special emphasis on women and climate-vulnerable communities, including innovative home-based childcare services to help more women enter the workforce and “climate-smart” livelihood options in flood- and cyclone-prone areas.
“A good job can transform a life, a family, and a community,” said Gayle Martin, World Bank Acting Division Director for Bangladesh and Bhutan. “This additional financing will help more young people from low-income families access the market-relevant resources they need for better employment.”
ADB Supports Modernization of TVET Teachers
The ADB confirmed a $150 million loan for the TVET Teachers for the Future programme, which will train around 10,000 technical and vocational education and training (TVET) instructors in Fourth Industrial Revolution (4IR) technologies.
The investment aims to modernise Bangladesh’s TVET system so that instructors can prepare students for high-tech industries and global competitiveness.
Strategic Push Against Skills Mismatch
Together, the two packages form a coordinated $300+ million push to close the gap between traditional education and the skills demanded by today’s economy.
The Economic Relations Division (ERD) described the combined investments as a “strategic offensive” to support Bangladesh’s transition to upper-middle-income status.
