Bangladesh all set to get $1.3b from IMF to bolster economy

Dubai: Bangladesh will have ‘immediate access' to a further $884 million in support from the IMF as the country’s economy goes through a significant transition program.

“Bangladesh’s program performance has been broadly satisfactory despite the difficult political and economic context and increased downside risks,” said the IMF in a statement after a further round of talks with government representatives.

Earlier, the IMF had forecast the economy growing by 3.8%.

“Advancing the reform agenda is critical to restoring economic stability, protecting the vulnerable, and supporting inclusive and environmentally sustainable growth.”

One dirham fetches 32.91 Bangladeshi takas.

There will also be a further $453 million releasing from the IMF to help the Bangladesh economy better cope with the consequences from climate change.

“Bangladesh’s macroeconomic challenges have increased since the popular uprising in the summer of 2024, which led to the ouster of the previous government,” the IMF noted in a statement.  

“The timely formation of an interim government has helped stabilize political and security conditions, fostering a gradual return to economic stability.”

According to the IMF, “However, the economic outlook has worsened due to persistent political uncertainty, continuation of tighter policy mix, rising trade barriers, and increasing stress in the banking sector.

“The authorities are fully committed to implementing necessary policies under the program and have recently pressed forward with critical reforms to increase exchange rate flexibility and boost tax revenues.”

In another positive for the Bangladesh government, the IMF's Executive Board also approved a 'modification' of performance criteria.

This means it will get a 'waiver' for the 'non-observance of the performance criterion related to the non-imposition and non-intensification of exchange restrictions'.

This is based on the 'temporary nature of the non-observance and the implementation of corrective measures', the IMF said.