IMF happy with Bangladesh’s reform drives
Staff Reporter :
Finance Adviser Dr. Salehuddin Ahmed said on Tuesday that the International Monetary Fund (IMF) has expressed overall satisfaction with Bangladesh’s ongoing reform efforts, while again pointing out several structural issues that demand stronger focus.
“They told us the overall situation is positive, but they continue to monitor the existing challenges.
We are following a plan, but they believe faster execution of certain measures would yield better results,” he told reporters after the meetings of the Economic Affairs Committee and the Government Purchase Committee at the Secretariat.
He noted that the IMF’s main concern lies in the pace of policy implementation, particularly regarding adjustments to interest rates.
“The central bank cannot raise the policy rate abruptly-everyone understands that. We must simultaneously ensure improvements on the supply side,” he said.
Dr. Salehuddin added that the IMF has also flagged problems within the banking sector.
“They have placed five banks under close observation, calling them a major source of concern,” he said, stressing that the government must adopt firm reforms to improve financial sector governance.
Regarding revenue administration, he said the IMF is encouraged by the progress made by the National Board of Revenue (NBR) but wants reforms to continue steadily.
“The revenue process is now more disciplined, but manpower restructuring and capacity building will take time,” he noted.
He said that although a full transformation may not be achieved within the current government’s term, substantial foundational work will be completed.
“We may not reach the final stage, but the framework and essential preparations will be in place,” he assured.
Asked whether the IMF has issued any new conditions, Dr. Salehuddin said no additional requirements were set.
“This was essentially a consultation. They expressed satisfaction with our actions so far. The economy is largely stable, and the remaining period will be used to consolidate progress,” he said.
The IMF’s $4.7 billion loan programme, approved in January 2023, was designed to bolster economic stability, strengthen fiscal reforms, and improve resilience amid global economic shocks.
Several instalments have already been released, while others remain tied to performance benchmarks and structural reform progress.
The IMF will withhold the sixth tranche until the national election is held and a new government takes office.
The interim administration-which came to power on 8 August 2024, three days after the Awami League was removed following mass protests-has scheduled the general election for February.
Finance ministry officials expect the sixth and seventh tranches to be released in June 2026.
On June 23, the IMF cleared the fourth and fifth instalments worth $1.3 billion, pushing total disbursement to $3.6 billion.
In June 2025, the IMF expanded the total loan size to $5.5 billion from the original $4.7 billion to support Bangladesh’s balance-of-payments needs, and extended the programme duration by six months-now ending on 27 January 2027 instead of July 2026-based on Dhaka’s request.
The interim government has already eased balance-of-payments pressures.
Backed by rising remittances and export earnings, Bangladesh’s gross foreign exchange reserves climbed to $32 billion on October 16-the highest level in 31 months.
The ongoing IMF mission is also connected with the Article IV consultation, the Fund’s annual review of member countries’ macroeconomic conditions.