Sustainable Economic Recovery Program (Subprogram 2)

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The program supports Bangladesh's economic recovery from the coronavirus disease (COVID-19) pandemic amid a context of heightened regional and global economic uncertainty. Subprogram 2 deepens reforms initiated in subprogram 1, with continued focus in two areas: (i) public financial management (PFM); and (ii) access to finance for the underserved market segments, mainly cottage, micro, small, and medium-sized enterprises (CMSMEs). The PFM reforms will help create the fiscal space needed to boost investment in critical physical and social infrastructure. Broadening access to finance will help revitalize CMSMEs, which is crucial not only for preserving employment and livelihoods but also for strengthening production networks throughout the value chain. Subprogram 2 advances these agenda while also building the capacities of government agencies to operationalize the reforms and shaping longer-term reform strategies and plans.