Bangladesh has informed the International Monetary Fund (IMF) that it does not require a new loan installment at this time, according to Economic Adviser Dr. Ahmed. He stated that the IMF has been requested to first review the country’s current economic situation before releasing further funds.
Speaking to reporters on Sunday after a meeting of the Food Planning and Monitoring Committee at the Cabinet Division the adviser said that no decision has yet been made regarding the sixth installment under the IMF’s $5.5 billion loan program. A final decision will be taken after discussions with the newly elected government.
Dr. Ahmed further mentioned that an IMF delegation is scheduled to visit Bangladesh in February to assess the overall economic conditions. Based on that evaluation the next installment and related matters will be decided. The extent to which the upcoming government wants to continue borrowing will also be discussed during that visit.
According to him the IMF views Bangladesh’s economic position positively and has acknowledged that the country is taking appropriate policy measures. However the institution has offered several policy recommendations most notably improving revenue collection and increasing spending on social protection programs. He added that once the new government takes office it will prepare a comprehensive plan addressing IMF loans reforms and associated conditions.
Bangladesh had originally applied for IMF support and on January 30 2023 the Fund approved a $4.7 billion loan. In June 2024 the program was extended by six months with an additional $800 million added bringing the total to $5.5 billion.
So far, Bangladesh has received about $3.64 billion in five installments the first in February 2023 the second in December 2023 the third in June 2024 and the fourth and fifth in June 2025. The remaining balance stands at approximately $1.86 billion.
Currently an IMF mission has been in Dhaka since October 29 holding meetings with various government agencies to review how well Bangladesh has met the Quantitative Performance Criteria (QPC) outlined under the loan program.
These QPCs represent the IMF’s binding performance benchmarks. In May several new conditions were added including limits on external borrowing timely payment for fuel and fertilizer imports meeting revenue targets set by the National Board of Revenue (NBR) and maintaining adequate foreign exchange reserves. If these conditions are not met the IMF may withhold the next disbursement though its executive board can grant waivers in specific cases.
