Bangladesh has formally requested a new financial arrangement from the International Monetary Fund (IMF) to support its ongoing economic reform programme, according to IMF Mission Chief for Bangladesh Ivo Krznar.
In a statement issued on Wednesday, Krznar said IMF staff are currently engaging with Bangladeshi authorities to discuss their reform priorities and broader policy agenda as the Fund considers possible next steps.
He noted that Bangladesh’s existing support packages under the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF) have played an important stabilising role during a challenging economic period. However, he added that both the macroeconomic and political conditions have changed significantly since the approval of the IMF-supported programme in January 2023.
Krznar stressed that continued weaknesses in the banking sector, along with low revenue mobilisation, highlight the need for a renewed and more sustained reform effort. He said any future arrangement would depend on Bangladesh’s balance of payments requirements and strong policy commitments backed by a credible reform roadmap. Such a programme would also need approval from the IMF Executive Board.
He further said that a staff visit to Bangladesh is being planned to review recent economic developments, reform challenges, and policy priorities. This visit will help shape the framework for possible future assistance.
According to the IMF, detailed discussions on the size, structure, and reform conditions of any new programme will take place in a separate negotiation mission following the initial assessment.
