United News of Bangladesh

Finance Adviser Dr Salehuddin Ahmed on Tuesday (November 18) said the International Monetary Fund (IMF) has expressed satisfaction with Bangladesh’s ongoing economic reforms although reiterated concerns over several structural challenges that require closer attention. “They said the situation is overall good but they are monitoring the challenges. We are working under a plan but they feel that taking some steps a little faster would bring better outcomes,” he told reporters after meetings of the Advisers Council Committee on Economic Affairs and the Committee on Government Purchase at the Secretariat. He noted that the IMF is particularly concerned about the speed of policy implementation especially surrounding interest rate adjustments. “Increasing the policy rate by the central bank cannot be done suddenly. Everyone knows that. We have to ensure supply-side improvements at the same time,” he said. Dr Salehuddin also mentioned that the IMF has raised issues related to the banking sector. “They have taken five banks under observation which they consider a major challenge,” he said, adding that the government needs to undertake tough reforms to strengthen financial governance. On revenue administration, the adviser said the IMF is satisfied with the current progress of the National Board of Revenue (NBR) but expects reforms to continue steadily. “The process has become principled but manpower restructuring and capacity enhancement will take time,” he said. Read more: Bangladesh’s reserves still remain above $31 billion after ACU payment He added that while it may not be possible to achieve a complete turnaround within the current government’s tenure substantial groundwork and structural preparations would be completed. “We may not reach the final conclusion but the logical framework and preparatory work will be done,” he assured. Responding to a question on whether the IMF has set any new conditions, Dr Salehuddin said no fresh conditions were imposed. “This was more like a consultation. They expressed satisfaction with the measures we have taken so far. The economic situation is largely under control and the remaining time will be used for consolidation,” he said. The $4.7 billion IMF loan programme, approved in January 2023, aims to support Bangladesh’s economic stability, strengthen fiscal reforms, and enhance resilience amid global economic pressures. Several tranches have already been disbursed while further installments remain tied to policy performance benchmarks and structural reforms. The IMF will delay disbursing the sixth tranche until the next national election and the new elected government assumes office. Read more: Bangladesh economy in ‘waiting vortex’; experts urge credible elections The interim government that assumed power on August 8, 2024 three days after the Awami League regime was ousted amid a mass uprising announced that the next general election would be held in February. Finance ministry officials said that theyare  expecting the releases of the sixth and the seventh tranches in June, 2026.   On June 23, the IMF approved the release of the fourth and fifth tranches amounting to $1.3 billion, taking the overall amount of disbursement to $3.6 billion. In June 2025, the IMF also increased the overall loan amount to $5.5 billion from $4.7 billion under the loan programme that began in 2023 under the AL regime in 2023 to meet the balance of payment shortage.   The progarmme period has also been extended by six months to January 27, 2027 from July 2026, following requests from Dhaka. The interim government has already reduced the balance of payment pressure. Driven by higher remittance and export earnings, the country’s gross foreign exchange reserves increased to $32 billion on October 16, the highest in 31 months. The latest IMF mission is also linked to the Article IV report, an annual consultations with its member countries on overall economy, on Bangladesh. Read more: Jamaat-e-Islami holds meeting with IMF on economy and tax system

Bangladesh’s economy is caught in a debilitating ‘waiting vortex’ of stagnant investment, high inflation and weak business confidence, with experts saying only a credible and participatory election can restore stability and drive recovery. The prevailing consensus across the business and policy landscape is that the economy is currently ‘breathing, but unable to walk’ as it is paralysed by political uncertainty ahead of the general election expected next February. Business owners and entrepreneurs unanimously assert that new initiatives and investments are impossible without political stability and certainty. Professor Rashed Al Mahmud Titumir of Dhaka University, Liaquat Ali Bhuiyan, Senior Vice-President of the Real Estate and Housing Association of Bangladesh (REHAB), Inamul Haq Khan, Senior Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Anwar-ul-Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industries (BCI), and former Chief Economist of Bangladesh Bank Dr Mustofa K Mujeri talked to the UNB correspondent about the current economic situation in Bangladesh. Read more: Bangladesh’s reserves still remain above $31 billion after ACU payment The economy is sustained by political trust, and it is the government’s responsibility to restore that confidence, said economists, underscoring that without a stable political environment, the recovery process cannot begin. This sentiment is echoed by the country’s development partners. The International Monetary Fund (IMF) has reportedly linked the disbursement of the next tranche of its $4.7 billion loan to the formation of an elected government. Similarly, both domestic and foreign investors are reluctant to take risks, preferring instead to adopt a cautious ‘wait-and-see’ stance. Worrying Economic Indicators Private Sector Credit Growth: Loan growth to the private sector has dropped to around 6.5 per cent — roughly half the normal rate — signalling a sharp contraction in new business activity and entrepreneurship. Capital Machinery Imports: Imports of capital machinery, a key indicator of future industrial output, have declined by 25 per cent, casting a shadow over upcoming production and employment prospects. Inflation and Savings: Inflation has been persistently high, hitting 8.36 per cent in September 2025, hitting hard the purchasing power of ordinary citizens, with the sales of national savings certificates falling by over Tk 6,000 crore, making it clear that many are being forced to liquidate their savings. Foreign Investment: Foreign Direct Investment (FDI) fell by 22 per cent in the first quarter of the current fiscal year, as international investors remain cautious — with some existing firms even scaling back their operations. Govt moves to make SMEs a driving force of economy: CA’s office “Investment is now not just an economic question, but a question of social confidence,” one analyst observed, noting that political instability and deteriorating law and order are heavily discouraging entrepreneurs. Social Costs and Unemployment The economic stagnation is inflicting a deep social toll, with experts warning of rising poverty and worsening unemployment. Professor Titumir cautioned that high inflation has “reduced the purchasing power of the common people, increased poverty, and may push another 30 lakh people below the extreme poverty line.” The country now faces a mounting unemployment crisis, with around 13 lakh jobless youths — including one in every three university graduates. Industry Leaders Demand Clarity Business leaders across key sectors have emphasised the urgent need to restore political and policy clarity. Liaquat Ali Bhuiyan said that new investment in manufacturing, real estate, banking, and services has “nearly stopped.” Inamul Haq Khan noted that foreign buyers and partners, including the IMF, have little confidence in a temporary setup. Dhaka’s economy driven by manufacturing sector with 56% share: DCCI “IMF and foreign stakeholders are waiting for the new government. Only then will confidence and investment surge,” he added. Path to Recovery Economists argue that the top priority for the current interim administration must be to hold a swift, credible, and widely accepted national election, paving the way for an elected government to take charge. Anwar-ul-Alam Chowdhury (Parvez) told UNB that clarity on the election timeline and assurance of a peaceful process are the most crucial prerequisites for restoring economic stability. Dr Mustofa K Mujeri observed that the economic environment will remain fragile as long as high interest rates persist and political uncertainty continues to limit capital flow. Ultimately, analysts suggest that the nation stands at a “historic juncture,” where it must either accept the current stagnation or move decisively towards a new economic model anchored in political stability and trust. Read more: IMF to decide Bangladesh’s next loan installment after formation of political govt: Adviser

The Bangladesh Bank has settled US$1.61 billion in import payments to the Asian Clearing Union (ACU) for September and October 2025, keeping the country's foreign exchange reserves above the $31-billion mark. Following Sunday’s (9th November 2025) payment, the gross foreign exchange reserves now stand at $31.14 billion, higher than September’s $30.31 billion recorded after a similar $1.5 billion ACU payment. Based on the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual (BPM6) methodology, the reserve currently amounts to $26.44 billion, up from $25.40 billion in September. RCBC requested to forfeit $81m over Bangladesh Bank reserve heist Before the latest ACU settlement, the gross reserve was $32.71 billion, while the BPM6 figure stood at $28 billion. The central bank has been publishing reserve figures under the IMF’s BPM6 system since June 2023, in line with the IMF loan conditions. At that time, the reserve was $24.75 billion. Last week’s reserve figure of $32.71 billion was reportedly the highest in the past 32 months. The ACU (Asian Clearing Union) is a regional payment mechanism that facilitates trade settlements among member countries every two months. Its current members are Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, and Pakistan. Sri Lanka, a former member, withdrew amid its economic crisis and has yet to rejoin despite signs of recovery. Bangladesh’s foreign exchange reserves had peaked at $48 billion in August 2021 but later declined steadily, dropping to around $16 billion during the final days of the previous Awami League government. BB reserve heist review committee’s tenure extended for 3rd time Since the government transition, tighter measures against money laundering have reduced hundi (illegal money transfer) operations, contributing to higher formal remittance inflows. Remittances reached $10.90 billion from the start of the current fiscal year to November 8, representing a 14 percent rise compared to the same period a year earlier.

Finance Adviser Dr Salehuddin Ahmed on Sunday said the International Monetary Fund (IMF) is continuing its review of Bangladesh’s progress under the ongoing loan programme and a final decision regarding the next installment is expected only after the formation of the next political government. “The IMF has acknowledged that the government has been working to address macroeconomic challenges and implement reforms. They have some recommendations, particularly on revenue generation. We agree that tax revenue remains low, and there are structural reasons for this,” Dr Ahmed said. Talking to reporters at Bangladesh Secretariat after holding a series of meetings, the adviser said the government has already undertaken necessary reforms and is consolidating the progress before the upcoming general election, scheduled for February 2026. He said tax compliance among citizens remains weak, while the temporary suspension of the new National Board of Revenue (NBR) for two months also had an impact on revenue collection. “We are working to resolve these issues.” According to the adviser, the IMF has also emphasised increasing expenditure in the social sectors, especially health, education and social protection. “On food security, we are performing reasonably well.” BGMEA briefs IMF on RMG risks, urges govt to prioritize FTAs to counter LDC graduation challenge Responding to a question on whether the government expects to receive the next IMF tranche during the tenure of the interim administration, Dr Ahmed said the focus now is to maintain stability and hand over a well-structured economic reform framework to the elected government. “We will consolidate the work done so far. Of course, we cannot complete everything. Major reforms such as tax restructuring, public sector pay commission review, and strengthening the banking sector will continue. These will be carried forward by the next government,” he said. The adviser said Bangladesh has already submitted relevant reports to the IMF, and a review mission will visit the country again early next year. “The IMF will review again around the election period and then decide on disbursement. We have no objection to this. A stable political government is needed for sustained reform.” Asked about recent remarks by the Bangladesh Bank Governor on certain policy proposals, Dr Ahmed declined to comment but said any major decision would be taken collectively by the government. “This is an internal matter of the Bangladesh government. It will go to the advisory council for consideration,” he said. In response to a question, the adviser said he is scheduled to hold final discussions with the IMF on November 15.  “I have already had a virtual meeting with them. They said they are very happy with the overall economic direction. They acknowledged the efforts we have made and are making.” IMF to probe ‘NPL data concealment’ in Bangladesh’s banking sector The adviser also informed that an independent committee comprising economists has been formed to recommend reforms in the tax system. He identified the banking sector as the most critical challenge in the economy. “Some reforms have already begun, and the rest will proceed gradually. These issues will also be handed over to the next government.” Responding to whether the sixth installment of the IMF loan will be released during the interim government’s tenure, Dr Salehuddin said the IMF will review progress again after the national election expected in February.   “They want to see how much the political government continues the reforms. That is important for them. So, after their review early next year, they will make a decision,” he said. The $4.7 billion IMF loan programme, approved in January 2023, aims to support Bangladesh’s economic stability, strengthen fiscal reforms, and enhance resilience amid global economic pressures. Several tranches have already been disbursed, while further installments remain tied to policy performance benchmarks and structural reforms. The IMF will delay disbursing the sixth tranche until the next national election and the new elected government assumes office. The interim government that assumed power on August 8, 2024 three days after the Awami League regime was ousted amid a mass uprising has announced that the next general election would be held in February. Finance ministry officials said that they were expecting the releases of the sixth and the seventh tranches in June 2026.  IMF-WB proposes unified debt management office in Dhaka to strengthen public debt governance On June 23, the IMF approved the release of the fourth and fifth tranches amounting to $1.3 billion, taking the overall amount of disbursement to $3.6 billion. In June 2025, the IMF also increased the overall loan amount to $5.5 billion from $4.7 billion under the loan programme that began in 2023 under the AL regime in 2023 to meet the balance of payment shortage.  The progarmme period has also been extended by six months to January 27, 2027 from July 2026, following requests from Dhaka. The interim government has already reduced the balance of payment pressure. Driven by higher remittance and export earnings, the country’s gross foreign exchange reserves increased to $32 billion on October 16, the highest in 31 months. The latest IMF mission is also linked to the Article IV report, an annual consultation with its member countries on overall economy, on Bangladesh.    

A delegation from the International Monetary Fund (IMF) met BNP leaders on Sunday (9th November 2025) and discussed various issues, including reforms in the financial and social sectors. The IMF team, led by Chris Papageorgiou, its Bangladesh Mission chief, held the meeting at the BNP Chairperson’s Gulshan office, said BNP Media Cell member Sayrul Kabir Khan. BNP Standing Committee member Amir Khosru Mahmud Chowdhury led the four-member party delegation. The other members were BNP Chairperson’s Advisory Council members Md Ismail Zabihullah and Dr Ziauddin Hyder, and BNP Organising Secretary Shama Obaed. Sayrul said both sides discussed the preliminary findings of the IMF’s ongoing mission review report. Salahuddin slams govt for 7-day ultimatum on referendum consensus “The key issues of discussions included value-added tax (VAT) harmonisation and the reduction of exemptions under a new technical assistance programme, increasing corporate tax to improve the GDP-to-tax revenue ratio, reforming the banking sector, and raising social sector spending, which the BNP delegation highlighted as one of the party’s key policy priorities,” he said. Sayrul said the BNP delegation stressed that reforms in the financial, tax, and social sectors are essential to ensure sustainable economic stability in Bangladesh. “They said the BNP believes that long-term growth is not possible without an accountable and transparent financial management system.” He said the IMF team appreciated the BNP’s reform-focused policy priorities and constructive approach. The meeting ended with both sides expressing hope for continued policy dialogue and greater cooperation in the future, Sayrul added. IMF Chief highlights importance of bold reforms in banking sector

International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Tuesday praised the leadership of Prof Muhammad Yunus, crediting him for Bangladesh’s remarkable economic turnaround since assuming office as chief adviser of the interim government. Georgieva spoke with Prof Yunus over the phone from Washington, D.C., in the evening, said Chief Adviser’s Deputy Press Secretary Abul Kalam Azad Majumder. During their conversation, they discussed Bangladesh’s ongoing economic reforms, the regional landscape, and key challenges facing the country ahead of the general election scheduled for February. “I am impressed by what you have achieved,” said Georgieva, referring to the state of the economy when Professor Yunus assumed leadership in August last year. “You’ve done so much in such a short time. You took responsibility for your country when the risk of deterioration was very high. You are the right person at the right time,” she added. Georgieva particularly commended the stabilisation of the foreign exchange market and the recovery of foreign reserves following the government’s bold decision to introduce market-based exchange rate. Prof Yunus thanked the IMF managing director for her steadfast support during one of the most critical junctures in Bangladesh’s history. “Thank you for the wonderful support,” he said. He recalled their first meeting during the UN General Assembly in New York last year, noting that it played a pivotal role in fostering the country's path to economic recovery. US envoy Haas meets WB, IMF chiefs in Dhaka Reaffirming the interim government’s commitment to a timely and credible election, Prof Yunus stated that the polls would be held before the holy month of Ramadan in February. He reiterated that he would return to his previous work following the election. During their conversation, the IMF chief emphasised the importance of increasing domestic revenue and implementing bold reforms in the banking sector. “To be in a strong position, reform is inevitable. This is such a precious moment in the history of Bangladesh,” Georgieva said, urging the Chief Adviser to pursue deeper reforms in the months ahead. Prof Yunus outlined key measures already undertaken by his government, including restructuring efforts in the banking sector and initiatives to enhance revenue collection. “We inherited a devastated and completely broken economy. Some individuals literally stole money in bags from banks and fled the country,” he remarked. Govt won’t raise power tariff despite pressure from IMF: Energy Adviser The two leaders also discussed regional developments, including the ongoing youth uprising in Nepal and Bangladesh’s ambition to join ASEAN. Professor Yunus shared updates on Dhaka’s major infrastructure drive, including new port and terminal projects aimed at enhancing regional integration. Finance Adviser Saleh Uddin Ahmed and Finance Secretary Khairuzzaman Mozumder were present during the call.

The International Monetary Fund (IMF) has finally approved a $1.3 billion disbursement of the third and fourth tranches of Bangladesh's $4.7 billion loan program. As a result, it is set to receive a significant boost to its foreign exchange reserves, with the IMF approving the disbursement of US$1.3 billion from its ongoing $4.7 billion loan program.  This amount, covering both the third and fourth tranches, is expected to be deposited into Bangladesh's account on June 26. Economist Abu Ahmed questions logic behind complying with all IMF conditions The news was confirmed by Bangladesh Bank Governor Ahsan H. Mansur on Monday night, who stated, "We are receiving $1.3 billion. It has been approved by the IMF board today." Sources from the Finance Division of the Ministry of Finance and Bangladesh Bank indicate that the approval came during a meeting of the IMF's Executive Board at its headquarters in Washington D.C., held late Monday Bangladesh time. During the meeting, reports from the third and fourth reviews of Bangladesh's loan program were presented and subsequently approved. The IMF initially approved the $4.7 billion loan proposal for Bangladesh on January 31, 2023, for a period of three and a half years.  IMF finally agrees to release $1.3bn loan tranche for Bangladesh in June At the time, the IMF stated that the loan program aimed to help Bangladesh maintain macroeconomic stability, protect vulnerable and marginalized populations, and foster inclusive and environmentally sustainable growth. The then-Awami League government had sought the loan primarily due to a widening current account deficit, depreciation of the Bangladeshi Taka, and declining foreign exchange reserves. The release of these two tranches is expected to provide much-needed support to Bangladesh's economy, which has been grappling with external sector challenges.

The International Monetary Fund (IMF) has finally agreed to disburse the next two tranches of its $4.7 billion loan package for Bangladesh, amounting to $1.3 billion, in June. The decision follows a series of meetings held in Washington between Bangladesh Bank Governor Dr Ahsan H Mansur and senior IMF officials, according to the central bank spokesperson. The funds had previously been withheld due to unresolved issues concerning the implementation of a more flexible exchange rate regime, particularly the adoption of a crawling peg mechanism, and concerns over the country’s tax-to-GDP ratio. Bangladesh may opt out of IMF loan programme if more conditions imposed An IMF staff mission, led by Chris Papageorgiou, visited Dhaka from 6–17 April to carry out a combined third and fourth review of Bangladesh's economic reform progress under the Extended Fund Facility (EFF), Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF). Dr Mansur is expected to elaborate on the outcome of the negotiations during a press conference scheduled for Wednesday (May 14) at the Bangladesh Bank headquarters. He will join the event virtually from Dubai. Bangladesh’s economy holds glimmers of hope amid IMF-ADB’s lower growth forecasts: Experts

Dhaka, May 3 (UNB) – Bangladesh will pull out of the loan programme if the International Monetary Fund (IMF) imposes additional conditions for the release of upcoming tranches of the US$4.7 billion loan, warned Chief Adviser’s Special Assistant Anisuzzaman Chowdhury. He made the statement on Saturday while speaking at a budget seminar held at the Bangladesh Agricultural Research Council in Farmgate, Dhaka. “Bangladesh will withdraw if the IMF imposes more conditions for loan releasing. Because if all the conditions of the organisation are followed, the economy will become weak,” said Anisuzzaman. At the seminar ahead of Bangladesh's final recognition as a developing country next year, agricultural economists urged the government to raise the agriculture budget with clear targets. They also recommended reducing VAT on the import of raw materials used in poultry feed production, and called for easier access to loans and incentives for farmers. Faced with dwindling foreign exchange reserves, Bangladesh signed a US$4.7 billion loan agreement with the IMF on January 30, 2023. Tariffs, oil prices and other uncertainties weighing down Mideast economies, IMF says The first tranche of US$476.27 million was disbursed three days later. This was followed by a second instalment of US$682 million on December 16 of the same year. The third instalment of US$1.15 billion was received on June 24 last year. The IMF is scheduled to release the loan in six instalments by 2026. Although Bangladesh has so far received three, uncertainty now surrounds the disbursement of the fourth and fifth instalments.

National Board of Revenue (NBR) Chairman Md Abdur Rahman on Tuesday expressed hope about resolving issues with the International Monetary Fund (IMF), paving the way for the release of the third and fourth tranches of the $4.7 billion loan programme. “They (IMF) are pressing us to open the exchange rate, in lieu we are placing various types of formulas, the discussion is on, we are hoping to get a good result,” he said. The NBR chairman made the remarks while addressing a seminar titled Macroeconomic Partnership and Fiscal Measures at the Economic Reporters’ Forum (ERF) auditorium. He said the recent engagements with the IMF were positive and the lending agency provided several recommendations. “We accept many of those, and what is not possible for us to take we resist them,” he said. Abdur Rahman Khan also acknowledged that in some areas Bangladesh could not reach a consensus.“ Negotiation is going on, may be we could reach in to agreement,” he said. The IMF has suspended the disbursement of the third and fourth tranches of its $4.7 billion loan package to Bangladesh, citing the government’s failure to meet key reform conditions. Turning to the upcoming budget, the NBR chairman said both the Chief Adviser and Finance Adviser had instructed the formulation of a practical and realistic budget. Taka strengthens against dollar thanks to remittance, export growth “We will focus on revenue generating initiatives shunning the expenditures,” he said. He added that splitting the NBR into two separate divisions—Revenue Management Division and Revenue Policy Division—would be challenging, although the government has finalised the plan. Abdur Rahman hinted at tough fiscal measures in the upcoming budget aimed at boosting revenue collection. “We will implement all laws properly so that people do not feel that they are harassed,” he said. Stressing the importance of revenue generation, the NBR chairman warned of broader economic consequences if collection targets were not met. Policy Exchange Chairman and CEO Dr Mashrur Reaz presented the keynote paper at the seminar. ERF President Doulot Akter Mala and General Secretary Abul Kashem also spoke at the event.