B Mirror Report:  The government is planning to secure at least $10 billion in loans from the International Monetary Fund (IMF) and the Asian Development Bank (ADB) over the next five years to support economic restructuring and ensure long-term stability.

Officials said efforts are also underway to obtain around $3 billion in budget support from development partners by June in the upcoming fiscal year.

During a recent visit to Bangladesh, ADB President Masato Kanda announced a $5 billion loan package for the next five years. He made the commitment during a high-level meeting with Prime Minister Tarique Rahman, according to official sources.

The package will be disbursed over five years under a coordinated growth-focused development framework, averaging $1 billion annually. ADB said the funding aims to boost investment, create jobs, improve regional connectivity, and support balanced economic growth.

Kanda also signed a separate $1.4 billion loan agreement and announced an additional $250 million budget support to help Bangladesh manage rising import costs due to global energy and commodity price pressures.

Meanwhile, Bangladesh is moving toward a new three-year IMF reform-based loan program, replacing the existing arrangement. In a virtual meeting with IMF Deputy Managing Director Nigel Clarke, officials said discussions are underway for a new package worth $5–6 billion.

Finance Ministry officials said a new IMF mission may visit Dhaka in July or August to finalize loan size, duration, and reform conditions.

Finance Minister Amir Khasru Mahmud Chowdhury said the government remains committed to macroeconomic stability and structural reforms, but implementation challenges have emerged due to changing domestic and global conditions.

He added that the new IMF program would focus on realistic, prioritized, and implementable reforms under the new government.

IMF Deputy Managing Director Nigel Clarke welcomed Bangladesh’s reform initiatives and expressed optimism about continued engagement and cooperation.

Bangladesh initially joined the IMF’s $4.7 billion loan program in 2023, which was later increased to $5.5 billion. So far, the country has received $3.64 billion in five installments, with $1.86 billion remaining.

Key areas of disagreement between Bangladesh and the IMF have included VAT reforms, tax exemptions, market-based exchange rates, subsidy reductions, banking sector reforms, and restructuring of the National Board of Revenue.

Officials say IMF and ADB financing plays a crucial role in maintaining investor confidence and unlocking additional support from institutions such as the World Bank, AIIB, and JICA. The government expects at least $3 billion in additional budget support from multilateral lenders by June.

ADB said its enhanced lending program will support investment-led growth, economic diversification, governance improvements, and Bangladesh’s transition from least developed country (LDC) status.