The urgency of addressing urban poverty and vulnerability in Bangladesh stems from rapid urbanisation and rural-to-urban migration, which are reshaping the country’s economic and demographic landscape. While cities drive economic growth, they also concentrate poverty, with many urban poor living in overcrowded settlements, working in informal jobs, and lacking access to essential services. Rising living costs, congestion, and unemployment have further compounded these challenges, making urban deprivation a growing policy concern.

Despite economic progress, urban poverty reduction has been slow, declining at only 0.5 percentage points annually from 2010 to 2022, significantly trailing the comparable progress in rural poverty reduction. With urbanisation accelerating at an unprecedented rate, Bangladesh is projected to become a predominantly urban country by the late 2030s and thus addressing urban poverty and inequality will require a stronger focus on social protection.

However, social protection policies remain overwhelmingly rural-focused, failing to adapt to Bangladesh’s urban transformation. While the National Social Security Strategy (NSSS), adopted in 2015, recognised the need for urban-focused interventions, implementation has been slow and fragmented. Urban poor populations remain largely excluded, reflecting gaps in coverage, limited funding, and weak institutional coordination.

This paper examines urban poverty and vulnerability situations in Bangladesh, drawing on findings from the latest Household Income and Expenditure Survey (HIES) 2022. It analyses the state of social protection for urban populations, assessing coverage, identifying gaps, and evaluating targeting errors. Based on these insights, the paper proposes policy recommendations to enhance urban social protection frameworks, ensuring they are better aligned with the realities of urban poverty and vulnerability.