Bangladesh and the International Monetary Fund (IMF) are continuing discussions on the policy framework and key features of a new loan programme, Finance Minister Amir Khasru Mahmud Chowdhury said on Monday.

Speaking to reporters after a meeting at the Secretariat with an IMF delegation led by Bangladesh Mission Chief Ivo Krznar, the finance minister said the government would determine the timing and sequencing of economic reforms based on the country’s economic realities and the interests of its people.

“The IMF has proposed a phased approach to certain reforms. However, the government will decide when and how those reforms will be implemented, taking into account the country’s economic conditions and public interest,” he said, adding that the IMF had agreed to this approach.

Chowdhury said discussions between the two sides on the principles and overall structure of the proposed loan programme are ongoing.

He also said the IMF recognizes the responsibilities and accountability of an elected government in implementing economic reforms.

According to the finance minister, the IMF commended Bangladesh’s recent progress in the financial sector, particularly improvements in the capital market and the country’s tax-to-GDP ratio, while noting that further progress is needed in both areas.

He said negotiations on the new programme would continue, with further discussions scheduled for October on the sidelines of meetings in Bangkok with an IMF vice president. The IMF official is also expected to visit Bangladesh later this year, he added.