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Negotiations between the government and the International Monetary Fund over the release of the remaining tranches under Bangladesh’s $5.5 billion loan programme remain stuck, with little visible progress despite recent high-level discussions.

Officials familiar with the matter said the IMF is now closely watching the upcoming national budget for clear commitments on pending reforms before making any decision on disbursing the remaining funds.

Finance Minister Amir Khasru Mahmud Chowdhury, after attending the Spring Meetings of the IMF and the World Bank Group in Washington last month, said discussions with the lender were continuing and could take several more weeks.

However, insiders said negotiations have yet to produce any breakthrough significant enough to unlock the overdue loan tranches.

Bangladesh has already received $3.595 billion under the programme, which is scheduled to expire in December this year. Around $1.3 billion in two tranches has remained pending since June last year.

Officials said the IMF is unlikely to release the remaining funds unless the government provides a firm timeline and concrete commitment to complete the outstanding reforms.

“The IMF is waiting to see what announcements are coming in the next budget speech regarding the reforms. If anything is not specific, the lender may consider cancelling the programme,” a senior official said.

Another official said Bangladesh is unlikely to receive any IMF tranche within the current fiscal year unless discussions improve substantially. If negotiations progress positively, the pending tranches could be released in September, or the remaining amount may be disbursed together before the programme expires in December, he added.

The IMF, following its Article IV consultation with Bangladesh in January, pointed to weak revenue mobilisation, banking sector vulnerabilities, incomplete exchange-rate reforms and persistent inflationary pressure as major concerns affecting macroeconomic stability and growth prospects.

The lender also noted that Bangladesh failed to meet its revenue collection target by a wide margin and had yet to adopt a comprehensive strategy for restoring stability in the banking sector.

The IMF further stressed the need for stronger reforms in the foreign exchange regime and warned that fiscal targets had partly been achieved through cuts in development and social spending.

Officials said recent changes to the Bank Resolution Act 2026 also created fresh concerns among development partners.

The amended law allows former owners of five merged Islamic banks to regain control by repaying government-injected funds under relatively easy terms — a move that reportedly drew criticism from the IMF and the World Bank.

Sources said the World Bank recently asked Bangladesh to repeal Section 18(A) of the law as a condition for receiving a proposed $500 million budget-support loan.

Officials at the finance ministry could not immediately be reached for comment.