Finance

Bangladesh Seeks $1.3bn IMF Tranche by June

Govt pushes for timely support, vows gradual reforms

Written by The Banking Post


Finance and Planning Minister Amir Khosru Mahmud Chowdhury has urged the International Monetary Fund (IMF) to release the next $1.3 billion tranche of its loan programme by June, as Bangladesh looks to stabilise its economy amid mounting global and domestic pressures.

The request came during a meeting in Dhaka with an IMF mission led by Krishna Srinivasan. Further discussions are expected at the upcoming IMF–World Bank Spring Meetings in Washington in April.

The talks focused on the next instalment under the ongoing $5.5 billion bailout programme, which is aimed at supporting macroeconomic stability in the face of a global energy crisis and internal financial strains.

Speaking after the meeting, the minister said the IMF programme remains “on track” and emphasised the need for continued external support.

“We are working on implementing reforms that focus on deregulation and reducing the cost of doing business. Financial stability is our top priority to revive stalled development projects,” he said.

He acknowledged weaknesses in the banking sector and stressed the importance of improving the country’s tax-to-GDP ratio.

The minister also indicated that reforms tied to the IMF programme would be implemented gradually. “Everything cannot be done at once. We will rather do it our way,” he said.

Bangladesh is seeking the timely release of the next tranche, part of a package where the fourth and fifth instalments—totalling about $1.33 billion—were disbursed in June last year.

The IMF programme, which began in January 2023, has already delivered several tranches, supporting foreign exchange reserves and budget financing. The total package was later expanded from $4.7 billion to $5.5 billion.

Officials say the government is prioritising structural reforms in the banking sector and revenue mobilisation, alongside efforts to improve the business environment and reduce operational costs.

The minister noted that many development projects have slowed due to financial constraints and would require greater economic stability to resume.

The IMF mission’s visit comes as Bangladesh navigates inflationary pressures, global supply disruptions and uncertainties linked to the ongoing Middle East crisis, all of which continue to weigh on the country’s economic outlook.


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