Finance Adviser Dr Salehuddin Ahmed said on Sunday that the International Monetary Fund (IMF) will make a final decision on releasing Bangladesh’s next loan installment only after the formation of the new political government, reports UNB.
“The IMF acknowledges the government’s efforts to address macroeconomic challenges and implement reforms,” Dr Ahmed told reporters at the Bangladesh Secretariat after a series of meetings. “They have made some recommendations, particularly on revenue generation. We agree that tax revenue remains low due to structural reasons.”
He said the government has already introduced key reforms and is consolidating progress ahead of the general election scheduled for February 2026. Weak tax compliance and the temporary suspension of the National Board of Revenue’s operations for two months have affected collections, he noted, adding that corrective measures are underway.
According to the adviser, the IMF has also stressed increasing spending in health, education, and social protection sectors. “On food security, we are performing reasonably well,” he said.
Asked whether the IMF tranche might be released during the interim administration’s tenure, Dr Ahmed said the focus is on maintaining stability and preparing a solid economic reform framework for the next government. “Major reforms—such as tax restructuring, public sector pay review, and strengthening the banking sector—will continue and be carried forward by the next administration,” he added.
He confirmed that Bangladesh has submitted the required reports to the IMF, with a review mission expected early next year. “The IMF will reassess around the election period and then decide on disbursement. We have no objection to this. A stable political government is vital for sustained reform,” Dr Ahmed said.
The adviser declined to comment on remarks by the Bangladesh Bank Governor, noting that policy decisions would be taken collectively and reviewed by the advisory council. He is scheduled to hold final discussions with the IMF on November 15, following a recent virtual meeting where IMF officials reportedly expressed satisfaction with Bangladesh’s overall economic direction.
An independent committee of economists has been formed to recommend tax reforms, Dr Ahmed said, identifying the banking sector as the economy’s “most critical challenge.”
He reiterated that the IMF’s sixth loan installment will likely be released after the national election. “They want to see how the political government continues the reforms. That is important for them,” he said.
The $4.7 billion IMF loan programme, approved in January 2023, was designed to support economic stability, fiscal reform, and resilience amid global shocks. On June 23, the IMF approved the release of the fourth and fifth tranches—totaling $1.3 billion—bringing total disbursements to $3.6 billion.
In June 2025, the IMF increased the total package to $5.5 billion and extended the programme by six months to January 27, 2027. The interim government, which assumed power on August 8, 2024, after the ouster of the Awami League administration, has announced general elections for February 2026.
Finance ministry officials said the government expects to receive the sixth and seventh tranches by June 2026. Meanwhile, Bangladesh’s external position has improved, with gross foreign exchange reserves rising to $32 billion as of October 16—the highest in 31 months—driven by higher remittance inflows and export earnings.
The latest IMF review mission is also tied to the Fund’s Article IV consultation on Bangladesh’s overall economic performance.
Bd-pratidin English/ Jisan
