IMF plans staff visit to Bangladesh to review economic outlook
IMF Mission Chief for Bangladesh Ivo Krznar said the visit would also facilitate engagement with the authorities on their reform agenda and policy priorities as part of the Fund’s consideration of possible next steps.
The International Monetary Fund (IMF) is planning a staff visit to Bangladesh to review recent economic developments, discuss policy priorities with the authorities, and assess the country's economic outlook and reform challenges.
In a statement issued today (3 June), IMF Mission Chief for Bangladesh Ivo Krznar said the visit would also facilitate engagement with the authorities on their reform agenda and policy priorities as part of the Fund's consideration of possible next steps.
Krznar said discussions about the parameters of a potential new IMF-supported programme, including its size and related reform commitments, would take place in the context of a subsequent programme negotiation mission.
Keep updated, follow The Business Standard's Google news channel
The Bangladeshi authorities have requested a new IMF financial arrangement to support their economic reform programme, he said.
Krznar said IMF staff are engaging with the authorities on their reform agenda and policy priorities as part of the Fund's consideration of possible next steps.
He noted that Bangladesh's current arrangements under the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF) have provided an important policy anchor during a very difficult period.
However, he said the macroeconomic and political context has changed substantially since the Fund-supported programme was approved in January 2023, and the authorities now face a more complex set of challenges.
Krznar added that banking-sector weaknesses and low revenue mobilisation underscore the need for a renewed and sustained reform effort.
He said the authorities' request for a successor arrangement provides an opportunity for the Fund and the authorities to agree on a potential programme that reflects the current challenges and incorporates the new authorities' objectives and priorities.
Any new arrangement would need to be based on Bangladesh's balance-of-payments needs and strong policy commitments anchored by a credible reform agenda, and would be subject to the IMF's policies and Executive Board approval.
"The IMF remains a committed partner to Bangladesh in its efforts to secure lasting macroeconomic and financial stability, strengthen resilience, and support strong, inclusive growth," he added.
