Staff Reporter:
The International Monetary Fund (IMF) has said that both BNP and Jamaat-e-Islami expressed strong support for the continuation of Bangladesh’s IMF loan programme.
During its recent 13-day review mission in Dhaka, the IMF team met with leaders of both parties to understand their reform agendas, economic priorities, and plans for the upcoming transition and elections, said Chris Papageorgiou, head of the mission, at an online press briefing on Thursday.
The discussions confirmed that the parties are positive about continuing the IMF loan programme.
The IMF will conduct a formal review and decide on the next installment of the $5.5 billion loan by end of May next year, after an elected government assumes office. Ahead of that, a high-level delegation will return to Dhaka for detailed discussions with the new government on its reform agenda.
Papageorgiou stressed that the new administration must prioritize revenue and banking sector reforms to maintain economic stability. IMF officials described the current 8percent inflation rate as “terrible”, noting that although it has dropped from double digits two years ago, it remains high especially for low-income groups.
They recommended a contractionary monetary policy until inflation falls to the 5–6percent range, alongside efforts to boost revenue collection to fund infrastructure and social safety net programmes.
Earlier, on 9 November, the IMF delegation met BNP leaders to discuss reforms in the financial and social sectors, followed by talks with Jamaat-e-Islami on 12 November about Bangladesh’s sustainable economy and financial sector health.
The mission arrived in Dhaka on 29 October to assess compliance with IMF conditions, despite the decision not to release the fifth tranche of the $5.5 billion loan during the tenure of the interim government.
