BNP, Jamaat very positive about continuation of IMF loan programme: IMF
Describing Bangladesh’s current 8% inflation rate as “terrible,” IMF officials noted that while it has come down from double digits two years ago, the rate remains too high—especially for low-income groups.
The International Monetary Fund (IMF) has said that both the BNP and Jamaat-e-Islami are very positive about the continuation of Bangladesh's IMF loan programme.
During the mission's stay, the IMF team met with leaders of both BNP and Jamaat to understand their reform agendas, views, and economic plans, Chris Papageorgiou, who led the latest review mission in Bangladesh, said during an online press briefing this evening (13 November) before the IMF delegation's departure after a 13-day review mission in Dhaka.
The discussions focused on how the transition process and election will take place, the parties' (BNP-Jamaat) priorities, and how they plan to implement them. The parties expressed very positive opinions about continuing the IMF loan programme, Papageorgiou said.
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The IMF said it will conduct a review and decide on the next instalment — $5.5 billion loan — by the end of May next year after an elected government assumes office.
Ahead of that, a high-level IMF delegation will visit Dhaka to hold detailed discussions with the new government on its reform agenda.
He further stressed that the new administration must prioritise revenue sector reform and banking sector reform to ensure economic stability.
Describing Bangladesh's current 8% inflation rate as "terrible," IMF officials noted that while it has come down from double digits two years ago, the rate remains too high—especially for low-income groups.
The IMF also recommended maintaining a contractionary monetary policy until inflation falls within the 5–6% range.
It urged the government to focus on enhancing revenue collection to finance infrastructure development and social safety net programmes.
Earlier, on 9 November, an IMF delegation met BNP leaders to discuss reforms in the financial and social sectors. On 12 November, the team also held talks with Jamaat-e-Islami to discuss Bangladesh's sustainable economy and the overall condition of its financial sector.
The IMF review mission arrived in Dhaka on 29 October to assess whether Bangladesh has met the lender's conditions despite the decision not to release the fifth tranche of the $5.5 billion loan during the tenure of the current interim government.
