IMF to Resume Talks with Bangladesh for Imminent Agreement

The International Monetary Fund (IMF) has announced that it will continue discussions with Bangladesh to reach a staff-level agreement soon, possibly during the IMF-World Bank Spring Meetings in Washington this April. This agreement would facilitate the completion of the combined third and fourth reviews under the IMF’s Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF) programmes.

In a statement, the IMF reiterated its commitment to support Bangladesh during this challenging period. An IMF mission led by Chris Papageorgiou visited Dhaka from April 6 to 17 to assess the country’s economic and financial policies. The mission observed that Bangladesh’s economy remains under pressure, with GDP growth slowing to 3.3% in the first half of FY25, down from 5.1% a year earlier, due to recent political unrest, tighter economic policies, and diminished investor confidence. Although inflation decreased from a decade-high of 11.7% in July 2024 to 9.4% in March 2025, it remains above the Bangladesh Bank’s target range of 5–6%. The IMF recommended fiscal consolidation, a flexible exchange rate, improved tax compliance, and institutional reforms to stabilise the economy. It also urged enhanced governance, greater climate resilience, and structural changes to attract investment and diversify exports.

During its mission, the IMF held consultations with senior government officials, the Bangladesh Bank, the National Board of Revenue, development partners, and private sector representatives. The fourth tranche of the $4.7 billion IMF loan, originally scheduled for release in March, was deferred as some prior conditions were not met. Bangladesh has so far received $2.3 billion under the loan agreement approved in 2023.