Bangladesh Eyes Next IMF Tranche by June

 

Bangladesh Eyes Next IMF Tranche by June: Finance Minister

Finance Minister Amir Khosru Mahmud Chowdhury on Tuesday said Bangladesh’s ongoing programme with the International Monetary Fund remains on track.

He noted that the programme will undergo further review in the coming months as the government advances a series of economic reforms aimed at stabilising the financial sector and restoring growth.

“We already have a programme with the IMF, and it is ongoing,” he told reporters after a meeting with Krishna Srinivasan at the Finance Ministry.

The minister said the IMF programme has been in place for several years and will continue, with the next review scheduled for July. “Discussions are ongoing regarding the programme’s conditions and their implementation in line with Bangladesh’s current economic realities,” he added.

Khosru acknowledged that Bangladesh is facing a challenging economic environment, particularly in the banking sector, which he described as relatively weak, along with difficulties in the capital market and a low tax-to-GDP ratio.

He said the government is working to implement reforms outlined in its election manifesto, focusing on deregulation, improving the ease of doing business, and reducing business costs.

According to the minister, several initiatives have already been launched in the social sector, including family support programmes, farmer assistance schemes, and agricultural credit initiatives.

He also noted that many development projects stalled due to financial constraints during the previous interim administration will need to be revived as part of broader recovery efforts. “To revive these projects, we must undertake financial reforms and bring the economy to a stable position,” he said, adding that further measures will be reflected in the upcoming national budget.

On IMF funding, Khosru said discussions are ongoing regarding the next disbursement, with around $1.3 billion expected by June, subject to review.

He added that the matter will be discussed further at the IMF-World Bank Spring Meetings in Washington, D.C., in April.

The finance minister also highlighted recent government efforts to manage economic pressures amid global disruptions, including fuel supply challenges and inflation risks during Ramadan and Eid. He said transport services continued without fare increases, essential commodity prices remained relatively stable, and there was no unrest in the garment sector, with workers receiving wages on time.

Emphasising the need for collective effort, he called on citizens to cooperate with the government. “The government alone cannot do everything. Public cooperation and restraint are essential. While global factors are beyond our control, we can overcome this crisis together,” he said.

Responding to questions, Srinivasan said financing discussions are based on policy engagement and are ongoing with both the finance minister and the prime minister. “Any discussion on financing is based on policy discussions, and that’s what we had with the minister this morning,” he said.

Addressing concerns about global instability, including the impact of war, Srinivasan noted that such uncertainty affects all countries, including Bangladesh. “The war is an uncertainty for every country, and Bangladesh is in the same position,” he said, adding that the IMF will continue working closely with Bangladesh to address economic challenges.