IMF welcomes Bangladesh's fiscal reform efforts

Finance Minister Amir Khosru Mahmud Chowdhury has said the International Monetary Fund (IMF) has expressed support for the government's phased economic reform strategy and praised its progress in fiscal management and structural reforms.

Speaking to reporters on Monday after meeting IMF Mission Chief for Bangladesh and Hong Kong Ivo Krznar at the Finance Ministry in Dhaka, the minister said the discussions were constructive and helped lay the foundation for future engagement under the IMF-supported programme.

"The government presented its reform strategy based on a gradual and well-sequenced approach, stressing that major economic reforms cannot be implemented overnight. The IMF agreed with the government's phased reform plan, recognising the need to align policy implementation with prevailing economic realities and national priorities," he said.

Amir Khosru said the welfare of the people remained at the centre of all government economic decisions and reform initiatives.

He said the IMF had expressed satisfaction with the government's progress over the past four months in several key areas, including financial sector reforms, capital market development and revenue mobilisation.

According to the minister, the IMF particularly welcomed the government's efforts to improve revenue collection and acknowledged the progress achieved within a short period. The two sides also discussed measures to raise Bangladesh's tax-to-GDP ratio to strengthen long-term fiscal sustainability.

On subsidies, he said no specific conditions or decisions had been finalised, as the current discussions were focused on establishing a policy framework for future cooperation rather than detailed programme conditions.

Describing the negotiations as an ongoing process, Amir Khosru said the next round of talks with the IMF is expected to take place on the sidelines of the World Bank-IMF Annual Meetings in September or October.

He expressed optimism that the IMF's positive assessment of the government's reform efforts would support future economic programmes and strengthen continued cooperation between Bangladesh and the global lender.