Bangladesh could receive a $2.39 billion loan tranche from the International Monetary Fund (IMF), with an IMF delegation set to visit Dhaka in April to review compliance with agreed-upon conditions, according to the Finance Division.
An IMF team is scheduled to arrive on 5 April to assess progress on key policy reforms before the release of the fourth and fifth loan instalments.
The delegation will hold meetings with various government agencies over two weeks, including the Finance Division, National Board of Revenue (NBR), Power Division, Bangladesh Energy Regulatory Commission (BERC), and the Ministry of Energy and Mineral Resources.
It will conclude with a press briefing on 17 April, after consultations with Economic Adviser Salehuddin Ahmed.
Bangladesh entered into an IMF loan programme on 30 January 2023 and has so far received three instalments: $476.3 million in February 2023, $681 million in December 2023, and $1.15 billion in June 2024, totalling approximately $2.31 billion.
The remaining $2.39 billion has yet to be disbursed, with the fourth tranche facing delays.
However, the government is optimistic about securing both the fourth and fifth tranches together in June.
Finance Adviser Dr Salehuddin Ahmed stated that the IMF loan is crucial for budgetary support, prompting an agreement between Bangladesh and the IMF to release the two upcoming instalments simultaneously in the 2024-25 fiscal year.
According to insiders, Bangladesh must address three major hurdles to unlock the IMF funds: Adopting a market-based exchange rate, increasing tax revenue by 0.5% of GDP, and separating revenue administration from NBR's tax policy.
While the government has assured the IMF of its commitment to these conditions, progress has been limited, except for exchange rate adjustments.
The central bank has implemented a crawling peg exchange rate system, stabilising the US dollar at Tk122 and preventing sharp fluctuations. However, key revenue policy reforms remain pending.
