Led by Finance Adviser Salehuddin Ahmed, the Bangladesh delegation held a series of meetings with IMF representatives in Washington.
The International Monetary Fund has no major disagreement with Bangladesh over reforms to the National Board of Revenue, one of the conditions set by the lender for the fourth and fifth instalments of the $4.7 billion loan.
IMF left Bangladesh without any decision on the release of next tranches of a loan.
The global lender said such an agreement would pave the way for completing the combined third and fourth reviews
The visiting mission of the International Monetary Fund (IMF) is prioritising four conditions for releasing two instalments of an ongoing $4.7 billion loan programme, according to Finance Adviser Salehuddin Ahmed.
“If the IMF does not release the funds, we will have to boost revenue,” he added
The International Monetary Fund has deferred the release of the fourth tranche of the $4.7 billion loan to June instead of March as Bangladesh could not meet some prior conditions.
Two years after Bangladesh turned to the International Monetary Fund (IMF) for a $4.7 billion bailout to address its worsening macroeconomic pressures, the nation stands at a crossroads.
The International Monetary Fund will give Bangladesh $645 million in the fourth tranche under the $4.7 billion loan programme, taking the total disbursement to $2.31 billion.
The government is going to unveil a Tk 7,61,785 crore budget for the next fiscal year on Thursday, setting containment of high inflation as a major target.
Reforms following the IMF prescription should not harm disadvantaged groups
As is well-known, credit from the IMF comes with strings attached, and the latest one is no exception.
The central bank took the decision to comply with IMF's loan conditions
There is likely to be yet another increase in electricity tariff by June as the government looks to shed its subsidy burden in line with the demands of the International Monetary Fund.
Economic uncertainty will keep us on our toes
The government is on track to meeting the International Monetary Fund’s tax collection target for March but may miss the mark in June.
A set of parallel initiatives need to be undertaken targeting the structural weaknesses of the gas sector and power sector development to ensure energy transition.
Three issues would be dictating the upcoming fiscal year’s budget, the last of the Awami League government’s present five-year term: the International Monetary Fund’s conditions, the persistently high inflation and next year’s national election.
Bangladesh’s preparation for LDC graduation would start in earnest with the International Monetary Fund’s 42-month loan programme, where one of the objectives is to overhaul the monetary and exchange rate policies to meet the needs of an open economy.
