The creation of a single Debt Management Office (DMO) in Bangladesh has been suggested by a joint World Bank and International Monetary Fund (IMF) mission as a way to improve public debt governance, simplify borrowing procedures, and lower fiscal risks. At a workshop titled “Establishing a Debt Management Office,” which was hosted by the Finance Division of the Bangladesh Secretariat in Dhaka on Sunday, November 3, the suggestion was presented.

As part of the Strengthening Public Financial Management to Enable Service Delivery (SPFMS) program, the session was organized under the Finance Division’s Scheme on Strengthening the Capacity of Treasury and Debt Management Wing.

According to the mission, Bangladesh’s debt management functions are currently dispersed across several agencies, resulting in coordination gaps, inconsistent data, and weak implementation of a comprehensive debt strategy. The mission also highlighted the lack of a centralised and audited debt database and the absence of a formal cash flow forecasting mechanism, both of which are vital for efficient and informed borrowing.

The IMF–World Bank team proposed consolidating all government and government-guaranteed debt functions under the Finance Division, beginning with the restructuring of the existing Treasury and Debt Management Wing. In its initial phase, the proposed DMO would manage domestic debt issuance, prepare annual borrowing plans, coordinate auction calendars, assess portfolio risks, and build an integrated debt database by linking existing systems.

To ensure professionalism and transparency, the mission recommended a clear legal framework defining borrowing authority, accountability measures, and disclosure standards. It also advised recruiting specialists in capital markets, settlements, and risk management, potentially from Bangladesh Bank, commercial banks, and the capital market.

Over the medium term, the DMO could evolve into a more autonomous body responsible for contingent liability management and investor relations, similar to models adopted by many countries in the 1980s to lower borrowing costs and strengthen fiscal transparency.

The workshop was attended by Md Hasanul Matin, additional secretary (Administration, Planning & TDM) of the Finance Division, as the chief guest. Dr Ziaul Abedin, additional secretary (Budget-1) and national programme director of SPFMS, and Hasan Khaled Foisal, additional secretary (Macroeconomics-1), were present as special guests. The session was presided over by Mohd Rashedul Amin, joint secretary of the Treasury and Debt Management Wing.

The mission, led by Arindam Roy, senior financial sector expert, included Dr Jens Clausen, Philip R.D. Anderson, and Per Jonsson. Officials from the Finance and Economic Relations divisions, including Md Monzorul Haque and Abu Daiyan Mohammad Ahsanuallah, also shared their insights.

The IMF–World Bank mission concluded that establishing a unified DMO would require strong political commitment, phased institutional reforms, modern IT investments, and sustained inter-agency coordination. Once operational, the DMO is expected to boost investor confidence, reduce financing costs, and strengthen Bangladesh’s long-term fiscal sustainability.