Dhaka, May 15 (HS): The International Monetary Fund (IMF) has announced a new financial assistance of $1.3 billion for Bangladesh. This assistance is being provided under the IMF’s $4.7 billion loan package, which now includes the fourth and fifth tranches. This decision was made following an agreement on reforms in the exchange rate.
An agreement has been reached between the IMF and the Bangladeshi government to adopt a crawling peg system. Under this system, the value of Bangladesh’s currency ‘Taka’ will gradually adjust according to global exchange rates, bringing flexibility and transparency to the foreign exchange market.
Serious discussions on revenue management, monetary policy, and foreign exchange policy took place during the IMF and World Bank Spring Meeting held in Washington in April. The Ministry of Finance of Bangladesh issued a statement on Wednesday stating, After reviewing all major issues, both parties have agreed on revenue policy, exchange rate system, and other reform frameworks.
According to the IMF, if the executive board approves this staff-level deal, Bangladesh will receive SDR 983.8 million (approximately $1.3 billion). The IMF noted that Bangladesh has also requested an increase of 567.2 million SDR (approximately $762 million) under the ECF and EFF to meet rising external financing needs and support broader economic stability.
Meanwhile, the Bangladeshi government has dissolved the National Revenue Board (NBR) in compliance with a key condition from the IMF. Two independent units have now been established under the Ministry of Finance: one to oversee tax policy and the other to handle tax collection and administration. The government is also expected to receive an additional $2 billion in budget support from other development partners.
Bangladesh has received this relief at a time when the country is facing serious challenges of inflation, slow growth rates, and a foreign payment balance crisis. The government has expressed its determination to tighten fiscal discipline, implement banking reforms, and increase climate investment.
Hindusthan Samachar / Jun Sarkar
