The government has begun discussions with the International Monetary Fund (IMF) to secure a new loan program. The Ministry of Finance has held talks with the IMF regarding the key principles and framework on which the next lending arrangement will be based.
Finance Minister Amir Khasru Mahmud Chowdhury disclosed the information to journalists on Monday after a meeting at the ministry with Ivo Krznar, the IMF Mission Chief for Bangladesh and Hong Kong.
The Finance Minister said that the government has clarified the foundations on which the new IMF-supported program will be structured, and the IMF has fully agreed with the proposed framework. He said reforms would continue in line with the country’s economic realities and would be implemented gradually. Significant changes cannot be introduced overnight, and the IMF shares this view.
He added that reforms would be carried out in phases based on national priorities and the overall economic situation. The IMF has endorsed this sequencing approach. The minister also noted that the IMF acknowledged the responsibilities of a democratically elected political government toward public welfare. He emphasized that all economic decisions would be taken while safeguarding the interests of the people.
According to the minister, the IMF delegation expressed satisfaction with the visible progress made during the government’s four months in office, particularly in financial sector reforms, the development of the stock and capital markets, and revenue collection. He said that, for the first time in the country’s history, tax collection achieved a significant milestone within just four months. Discussions were also positive on the government’s proposals to further increase the tax-to-GDP ratio and sustain this momentum.
Regarding subsidies, the Finance Minister clarified that no specific conditions had yet been discussed. He said the current talks focused primarily on establishing the overall framework for the new program, while detailed issues would be addressed in subsequent negotiations.
The minister also stated that Bangladesh has exited the previous IMF loan arrangement. He noted that the discussions are an ongoing process and that the next round of negotiations is expected to take place during the World Bank Annual Meetings in October.