B Mirror Desk : A staff-level agreement could be reached shortly, perhaps during the IMF-World Bank Spring Meetings in Washington this April, according to the International Monetary Fund (IMF), which has stated that it will continue talks with Bangladesh.
The international lender said in a statement today that such an agreement would open the door to finishing the combined third and fourth evaluations under its Resilience and Sustainability Facility (RSF), Extended Fund Facility (EFF), and Extended Credit Facility (ECF) programs.
“The goal of the ongoing discussions is to quickly obtain a staff-level agreement. The IMF stated, “We reiterate our commitment to support Bangladesh and its people during this difficult time.”
From April 6–17, an IMF delegation headed by Chris Papageorgiou traveled to Dhaka to examine the nation’s financial and economic policies.
With GDP growth down to 3.3 percent year-over-year in the first half of FY25 from 5.1 percent in the same period last year, the mission noted that the economy is still under strain due to global uncertainty.
It claimed that the recent populist upheaval, more regulations, and a decline in investor confidence were to blame for this downturn.
Although it decreased to 9.4 percent in March 2025 from a decade-high of 11.7 percent in July 2024, inflation is still far above than the Bangladesh Bank’s target of 5–6 percent.
To stabilize the economy, the IMF suggested better tax compliance, a more flexible exchange rate, fiscal consolidation, and institutional changes.
Additionally, it demanded improved climate resilience, increased governance and transparency, and structural changes to draw in foreign investment and diversify exports.
During their tour, the team met with representatives of the private sector, development partners, the National Board of Revenue, Bangladesh Bank, and senior government officials.
The IMF’s $4.7 billion fourth tranche was supposed to be released in March, but it was postponed since Bangladesh was unable to fulfill certain prerequisites.
In order to fortify the economic base, the government and the IMF have mutually agreed upon conditions that must be met before the installments are paid out.
In 2023, the IMF authorized a $4.7 billion loan, of which Bangladesh has already received $2.3 billion in three installments.
