2025-26 bilateral allocation [budget estimate]

$31.8 million

2025-26 total Australian ODA [budget estimate]

$110.3 million

2024-25 bilateral allocation [budget estimate]

$30.8 million

2024-25 total Australian ODA [budget estimate]

$106.9 million

2023-24 total Australian ODA [actual]

$111.1 million

Australia and Bangladesh have a partnership founded on more than 50 years of diplomatic relations, with Australia among the first to recognise Bangladesh after its independence in 1971. The two countries share an interest in an Indian Ocean region that is peaceful, stable and prosperous; which operates according to agreed rules and norms; and is supported by strong and effective regional architecture. Australia and Bangladesh aim to deepen our diplomatic, economic and security cooperation, and strengthen our people-to people links. Australia's development cooperation with Bangladesh predates Bangladesh's independence, when we provided Colombo Plan scholarships to then-East Pakistan. Australia also provided substantial humanitarian assistance during Bangladesh's War of Independence in 1971. In recent years, bilateral cooperation has focused on education, skills, rural poverty alleviation and social security reform. Regional initiatives have focused on infrastructure development, resource use, energy and regional trade integration. Australia has also been active in agricultural research. There are growing people-to-people links between Australia and Bangladesh - the Bangladeshi community in Australia includes a diaspora of over 73,000 according to data from the Australian Bureau of Statistics. Additionally, over 24,000 Bangladeshi students were enrolled to study in Australia in 2025. Reflecting Bangladesh's consistently strong economic growth, bilateral trade between our two countries has grown to more than $5 billion in 2024.

Australia is working closely with Bangladesh to expand bilateral trade and investment as Bangladesh graduates from Least Developed Country (LDC) status (expected to occur in 2026) and pursues its ambition to move to upper-middle income status over the next decade. Australia's development cooperation is valued by Bangladesh, aligns with Bangladesh's development priorities and has strengthened our bilateral relationship. It has also supported Australia's broader trade and economic interests in the Indo-Pacific region.

Australia's development partnership with Bangladesh is focused on meeting Bangladesh's priority needs while also supporting Australia's national interests. The Australia–Bangladesh joint statement issued by Australia and Bangladesh's Foreign Ministers in May 2024 and bilateral Senior Officials' Talks and Trade and Investment Facilitation Talks held in November 2024 highlighted a shift in the focus of development cooperation between the two countries towards support for our economic ties and growth in Bangladesh's economy.

Our substantial humanitarian program across Bangladesh and Myanmar (Australia's largest) has helped reduce Bangladesh's burden in hosting more than 1.1 million Rohingya, and the impacts on Bangladesh of the ongoing crisis in Myanmar.

Joint objectives of the Australia Bangladesh Development Partnership

Australia's International Development Policy presents a long-term vision for how Australia's development program will meet the critical needs of our partners, support sustainable development and help lift people out of poverty. Australia seeks relationships based on respect and partnerships that create economic and social value for all.

The overarching goal of the Australia–Bangladesh development partnership is a prosperous, resilient and stable Bangladesh. Our three partnership objectives support this goal. These objectives are based on Australia's experience delivering a modest but effective development program in Bangladesh and our comparative advantages as a long-term development partner supporting economic, trade, skills and infrastructure cooperation.

Objective 1 - Strengthening the policy and regulatory environment for growth

To support Bangladesh's transition toward a more diversified economy and inclusive growth, Australia is investing in skills development, employment generation, and policy reform. These efforts aim to prepare young people for future job markets while ensuring marginalised groups, especially women and people with disabilities, benefit from economic opportunities. Australia is also collaborating with international financial institutions to help Bangladesh avoid the middle-income trap by strengthening its financial systems, boosting private sector investment in energy, and improving tax revenue collection. Economic ties between the two countries are expected to deepen, with support for trade facilitation, biosecurity standards, and market access through Austrade and the Australian Government Department of Agriculture, Fisheries and Forestry. Australia Awards and a new vocational training program will further enhance human capacity development. Additionally, Australia is working with the United Nations Development Programme (UNDP) to improve governance and transparency, particularly through the NGO Affairs Bureau, which regulates foreign-funded NGOs. A core principle of this approach is promoting locally driven solutions and ensuring that innovative ideas from within Bangladesh are elevated into national policy frameworks. Australia are also working with UNDP and the Bangladesh Election Commission to support enhanced electoral transparency and accountability in Bangladesh.

Objective 2 - Improved economic and social outcomes, climate change mitigation, adaptation and resilience

Australia is working with partners including BRAC, the United Nations Development Programme (UNDP), and the World Bank to help Bangladesh build a more inclusive, resilient society and meet the needs of all its citizens. Key initiatives include poverty reduction through the BRAC Ultra-Poor Graduation model, climate-resilient agriculture via the Australian Centre for International Agricultural Research (ACIAR) and improved social protection systems under Bangladesh's National Social Security Strategy. The Australia NGO Cooperation Program (ANCP), is working with NGOs including CBM Global, Oxfam and ActionAid providing support across key areas including disability inclusion, gender equity, food security, sustainable livelihoods, and climate resilience to vulnerable communities across Bangladesh. Through the Bangladesh Economic Engagement Program (BEEP), Australia is advancing digital payments and climate finance architecture, while continuing grassroots efforts in climate change mitigation and adaptation. A net zero study on power sector decarbonisation conducted as part of this program prompted the Bangladesh government to revise its Merchant Power Plant Policy (MPPP), allowing private entities to directly purchase renewable energy from power producers. As Bangladesh progresses economically, Australia will adapt its support, with climate resilience remaining a central focus.

Objective 3 - Effective humanitarian responses for peace, security and stability

Since 2017, Australia has committed over $1.25 billion to support the humanitarian response to the Rohingya crisis and regional challenges stemming from Myanmar, making it the country's largest humanitarian effort. More than $540 million of this has gone to Bangladesh, aiding both Rohingya refugees and host communities. Australia and Bangladesh collaborate closely to combat transnational crimes like people smuggling and trafficking, while also enhancing regional peace and security. Australia supports Bangladesh's maritime capabilities through training and technical assistance, recognizing Bangladesh as a key partner in countering irregular migration. Additionally, Australia backs regional connectivity through the South Asia Regional Infrastructure Connectivity (SARIC) program, promoting inclusive infrastructure development.

Climate change

Bangladesh is among the most climate-vulnerable countries globally, with its low-lying geography and vast river delta making it highly susceptible to floods, cyclones, and rising sea levels. Climate change is expected to intensify these risks, threatening agriculture, fisheries, and aquaculture, and exacerbating poverty, inequality, and urban migration. By 2050, climate-related events could cost Bangladesh a third of its agricultural GDP and displace over 13 million people, with women disproportionately affected.

In response, Bangladesh has introduced a range of mitigation, adaptation, and resilience policies. These include reforestation, solar energy, disaster-resilient infrastructure, and social protection programs aimed at helping vulnerable communities recover from climate shocks. However, implementation capacity remains limited. The World Bank estimates that Bangladesh will need at least USD 12.5 billion in the medium term to meet its climate goals, with priority areas including locally led adaptation, decarbonisation, and institutional reform. Civil society partnerships will be crucial for delivering and monitoring these efforts effectively.

Australia supports Bangladesh's climate and disaster resilience through shared commitments under the Sendai Framework for Disaster Risk Reduction. Australia's development assistance aligns with the Framework's goals, including advancing gender-responsive disaster risk reduction and empowering women in resilience leadership. Australia also advocates globally for increased climate finance for vulnerable countries like Bangladesh and recognizes Bangladesh's strong voice in pushing for equitable climate action on the international stage.

Gender equality, disability and social inclusion

In 2023, Bangladesh scored 0.722 on the World Economic Forum's Global Gender Gap Index. This index measures parity between men and women in economic participation and opportunity, educational attainment, health and survival, and political empowerment (imparity = 0, parity = 1). For some years, Bangladesh has performed significantly better than other South Asian countries, with important progress having been made in women's rights and welfare. However, there has been less progress in improving in economic, political empowerment and gender-based violence. Despite decades of progress, much remains to be done to address the challenges women face daily, whether seeking income, negotiating relationships or staying safe. Bangladesh has one of the highest child marriage rates in Asia with around 51 per cent of young women married before their 18th birthday.

Lower vulnerability and higher levels of individual agency are correlated with higher income and education. For many poorer women in conservative rural areas, little has changed over the years. The hundreds of thousands of women in Rohingya refugee camps face the same obstacles, compounded by trauma and insecurity.

People with disability often face negative attitudes and stigma based on poor understanding of disability and multiple forms of exclusion. Although Bangladesh has taken steps to address this, sustained efforts are needed to ensure equality in opportunities. Disability rights have been firmly on society's radar for at least the past 10 years. However, progress on inclusion is impeded by a lack of data, which is only gradually being addressed. In principle, Bangladesh has identified - and is committed to tackling - widespread gaps in service provision for people with disability. This ranges from increasing opportunities from early year schooling to employment, to giving people with disability a greater voice in policy formulation. Nominally, the promotion of the rights of people with disability is a priority for Bangladesh, and legislation and policy are in place, but there is a long way to go to achieving equality in opportunities.

Economic reforms

Bangladesh has implemented significant reforms aimed at improving the economy's macroeconomic fundamentals in key areas. Foreign exchange reserves have stabilised following continuous falls since mid−2021. The Bangladesh Bank has supported greater exchange rate flexibility to reflect market conditions. Robust remittance inflows and export earnings, coupled with budget support disbursements from development partners, have also contributed to the stabilisation in foreign exchange reserves. Although inflation remains elevated, the World Bank has projected it will gradually subside gradually in the medium  term on the back of tight monetary policy, fiscal consolidation and the easing of import restrictions on key food commodities.

Bangladesh's economic governance reforms are gaining momentum, particularly in the banking sector, are gaining momentum. To address deep-rooted financial sector vulnerabilities, the Bangladesh Bank is implementing regulatory changes and corrective action frameworks. With support from Australia's funding to the World Bank under the Bangladesh Economic Engagement Program (BEEP), Bangladesh promulgated the Bank Resolution Ordinance 2025. This ordinance allows the Bangladesh Bank to resolve   intervene and support distressed banks, including through taking temporary control of banks and facilitating mergers and liquidations. Additionally, Bangladesh has announced plans to introduce a Bankruptcy Act to facilitate early restructuring of distressed but viable companies, amend the Money Loan Court Act to streamline loan recovery, and establish a Distressed Asset Management Act to enable private asset management companies to trade non-performing loans.

In terms of In support of export diversification, the Interim Government Bangladesh has revised the National Export Policy (2024–27) and is planning to merge five regional investment promotion agencies into a single central entity to streamline efforts to attract Foreign Direct Investment. Labour reforms are also a priority, with an ordinance expected in by July 2025    to amend the Bangladesh Labour Act and strengthen worker rights related to safety, health, and protection from harassment.