Tokyo, Oct. 22 (Jiji Press)–Japan is considering granting soft loans to Bangladesh to improve its rural infrastructure and investment environment, government sources have told Jiji Press. The two countries are expected to reach an agreement on the loans at a summit between Prime Minister Sanae Takaichi and her Bangladeshi counterpart, Tarique Rahman, on Tuesday. The fresh assistance is also aimed at countering China’s growing influence in South Asia, the sources said. Japan’s conventional assistance to Bangladesh has focused largely on major urban projects, including the construction of a mass rapid transit system in the capital, Dhaka. This time, Tokyo will prioritize small-scale public infrastructure projects in rural areas, such as schools and hospitals. The number of Japanese companies operating in Bangladesh rose to 338 in 2025 from 61 in 2005. Improved public services would help increase Bangladesh’s appeal to Japanese companies and make it easier for their employees to relocate with their families, thereby encouraging more firms to expand into the country. To improve the investment environment, Japan will also help train personnel responsible for procedures related to tax incentives and develop systems to expedite regulatory approval procedures. These measures are intended to pave the way for the upcoming entry into force of the two countries’ economic partnership agreement for free trade. Bangladesh, which faces the Bay of Bengal, occupies a strategic position along maritime trade routes. China is also seeking closer ties with Dhaka. Chinese President Xi Jinping met Rahman, who took office in February, in Beijing in June and agreed to elevate bilateral relations. Rahman will visit Japan next week for the first time since taking office. Takaichi aims to build a relation of trust with him and strengthen cooperation in economic and security affairs. END [Copyright The Jiji Press, Ltd.]
