IMF to decide next loan with elected govt
Staff Reporter :
Finance Adviser Dr. Salehuddin Ahmed on Sunday said the International Monetary Fund (IMF) will make its final decision on releasing Bangladesh’s next loan installment only after the formation of an elected political government, as part of its ongoing review of the country’s performance under the loan programme.
Speaking to reporters at the Bangladesh Secretariat following a series of meetings, Dr. Ahmed said the IMF has recognized the government’s progress in addressing macroeconomic challenges and initiating structural reforms.
“They have made a few recommendations-especially regarding revenue generation. We acknowledge that tax revenue remains weak due to several structural reasons,” he said.
The adviser noted that the interim administration has taken major reform steps in the fiscal and financial sectors and is consolidating progress ahead of the general election, scheduled for February 2026.
“Tax compliance is still poor among citizens, and the temporary suspension of the new National Board of Revenue affected collections. We are working to resolve these gaps,” he added.
According to Dr. Ahmed, the IMF has also stressed the need for increased spending in health, education, and social protection. “In terms of food security, we are performing reasonably well,” he said.
Responding to a question on whether the IMF tranche could be released during the interim government’s term, he explained, “Our focus now is to maintain stability and hand over a strong reform framework to the elected government.
Some reforms-like tax restructuring, the new pay commission, and banking sector strengthening-will continue under the next administration.”
He said Bangladesh has already shared necessary reports with the IMF, and another review mission is expected early next year.
“The IMF will reassess around the election period and then decide on disbursement. We welcome this approach since a stable political government is vital for sustained reforms,” he said.
Dr. Ahmed is scheduled to hold final discussions with the IMF on November 15.
“They are satisfied with our direction and the progress achieved,” he noted, adding that an independent committee of economists has been formed to recommend tax reforms.
He identified the banking sector as the most critical challenge, saying, “Initial reforms have started; the rest will proceed gradually.”
The $4.7 billion IMF programme, approved in January 2023, was expanded to $5.5 billion in mid-2025 and extended to January 2027. The IMF has so far released $3.6 billion, with further tranches tied to structural reform benchmarks.
The interim government, in power since August 2024 following the fall of the Awami League regime, expects the sixth and seventh tranches to be released in mid-2026.
Meanwhile, the IMF delegation, led by Mission Chief Chris Papageorgiou, met with BNP leaders on Sunday at the party chairperson’s Gulshan office to discuss financial and social sector reforms.
BNP Standing Committee member Amir Khosru Mahmud Chowdhury led the party team, joined by advisory council members Md. Ismail Zabihullah, Dr. Ziauddin Hyder, and organizing secretary Shama Obaed.
Both sides exchanged views on VAT harmonization, tax exemptions, and social spending. The BNP delegation underscored the need for transparent financial management and long-term reform-oriented policies.
The IMF team appreciated BNP’s constructive engagement and reform-focused approach, expressing optimism for continued policy dialogue and cooperation in the coming months.