Bangladesh expects $1.3b IMF instalment in July: Finance minister

Finance Minister Amir Khosru Mahmud Chowdhury today (24 March) said that the government expects to receive the next instalment of $1.3 billion from the International Monetary Fund (IMF) by July.

Speaking to reporters at the Secretariat following a meeting with Krishna Srinivasan, director of the IMF's Asia and Pacific Department, the Minister said that a final discussion regarding the disbursement will take place during the IMF's Spring Meetings in Washington this April.

"We discussed the IMF loan disbursement. The review for the $1.3 billion tranche will take place in July. In the meantime, we will prepare the national budget," the minister said.

He added that the government also discussed with the IMF the additional financing required for fuel imports, noting that the issue would be further elaborated during the upcoming Spring Meetings.

The finance minister said Bangladesh has been under an IMF programme for several years, and the programme will be revisited. "There is no problem with that. Discussions are ongoing regarding IMF requirements," he said.

However, he noted that not all IMF conditions can be implemented immediately. "We have to consider what is feasible in the current economic context and implement the remaining conditions gradually," he added.

Krishna Srinivasan told reporters that discussions were held with the Prime Minister and the Finance Minister on the ongoing loan programme, and more talks are expected. The IMF programme with Bangladesh will undergo a review, he said.

The minister also pointed to growing global economic uncertainty due to the ongoing conflict involving Iran, the United States, and Israel, saying Bangladesh is also facing similar challenges.

He said the current government inherited a fragile economy and banking sector upon taking office. "We discussed the reform measures outlined in our election manifesto to overcome the crisis. Significant reforms and deregulation are needed," he said.

Describing the situation, he said the banking sector and capital market are in poor condition, while the tax-to-GDP ratio remains very low. "These issues can be addressed through step-by-step implementation of reforms," he added.

He said the government has already begun expanding social safety net programmes, including family cards and agricultural loan waivers.

The minister also noted that many development projects stalled during the interim government period need to be revived. "To do that, we must strengthen our financial capacity through reforms and gradually implement the necessary measures," he said.

He emphasised the need to improve the ease of doing business and reduce the cost of doing business through deregulation, adding that these priorities will be reflected in the upcoming budget.

Referring to the ongoing global situation, he said discussions also covered challenges related to war situations, the banking sector, the capital market, and the low tax-GDP ratio.

Amid concerns over fuel supply disruptions due to the conflict, the minister urged citizens to remain patient and exercise restraint. "The government alone cannot manage this crisis. People must be cooperative and moderate in consumption," he said.

Despite the pressures of a global energy crisis, he credited the government's recent management for maintaining stability in the transport and garment sectors during the Ramadan and Eid period. 

"No transport stopped due to fuel shortages, and people were able to travel home without difficulty," he said.

"Together, we will be able to overcome this crisis," the minister added.