A $1 billion financing agreement for the modernisation and expansion of Eastern Refinery Limited (ERL) was signed today in the presence of Prime Minister Tarique Rahman and Islamic Development Bank (IsDB) Group Chairman Muhammad Sulaiman Al Jasser.

The Prime Minister’s Office confirmed the development through Deputy Press Secretary Mostafa Julfikar Hasan.

Speaking at the signing ceremony, Tarique Rahman described the agreement as a “statement of confidence” by the IsDB in Bangladesh.

He said the project was not merely an investment in energy, but also in Bangladesh’s energy security, economic resilience and long-term growth.

The prime minister said his government aimed to build a trillion-dollar economy by 2034 and transform Bangladesh into a manufacturing hub and regional gateway.

He said the government wanted to diversify the economy beyond the garment sector by expanding into areas such as electronics, pharmaceuticals, light engineering and green industries.

Tarique also said Bangladesh was increasingly looking to the IsDB and its affiliates as reliable sources of development financing.

He expressed hope that the Eastern Refinery project would become a landmark in Bangladesh-IsDB cooperation.

Bangladesh is a founding member of the IsDB. The bank has financed various development projects in the country over the decades.