The government expects to receive about $6 billion in funding from development partners including the World Bank and IMF during the current fiscal year, said Finance Advisor Dr. Salehuddin Ahmed.
He expressed this expectation at his office at the Secretariat after discussions with development partners on Tuesday.
The Finance Advisor said that the IMF’s third review mission arrived in Dhaka on Tuesday to assess the progress in fulfilling the conditions for releasing the fourth tranche of the $4.7 billion loan agreement. Discussions were held with the World Bank, IMF and OPEC Fund in Washington and the government expects some commitments by next June.
He also said that we are also expecting funding from the ADB and OPEC Fund in the near future. Commitments will come, but aid will not be provided even in a year.
The Finance Advisor also said that the IMF mission may come again in March next year for further discussions on their next course of action.
Regarding the ongoing $4.7 billion loan package, he said, $1.11 billion is expected to be disbursed this time. The IMF mission’s visit will primarily focus on the revenue sector, revenue deficit, growth and inflation. They will also evaluate the strategies we have taken so far and the plans we have made for the future. The IMF mission will discuss banking reforms, non-performing loans, pressure on depositors and other issues with Bangladesh Bank.
Commenting that economic stability has improved, although not completely, Salehuddin said, “Now is the time to attract investment and encourage foreign donors to contribute. The foreign exchange rate is relatively stable. Although some banks need liquidity support, the largest private sector bank – Islamic Bank is turning around and other banks are expected to gradually stabilize. Due to restrictions, internal remittances and export growth are strong, but imports are low, especially capital goods.”
The financial advisor also said, “We have assured them that the measures we will take will benefit the country in the long run.” We are considering possible steps to deal with this situation.
Expressing hope that the IMF will set realistic targets for the country’s economic development, he said, “The issue of additional financing will be considered after discussing the current loan package. We are now discussing the current loan package, and later we will consider seeking additional funds.”
