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Khosru eyes $1.3b IMF tranche by July

Khosru eyes $1.3b IMF tranche by July
File Photo: AFP/BSS
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Finance Minister Amir Khosru Mahmud Chowdhury on Tuesday said Bangladesh’s ongoing programme with the International Monetary Fund (IMF) is progressing as planned, with the government expecting to receive about $1.3 billion by July, subject to a successful evaluation.

Speaking to journalists after a meeting with Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, at the finance ministry, Khosru said the discussions focused on implementing programme conditions in line with the country’s economic situation.

“All measures cannot be implemented at once. We will proceed according to our priorities and the state of the economy,” the finance minister said.

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The talks also covered additional financing for fuel imports, which will be discussed at the IMF–World Bank Spring Meetings in Washington, DC, this April. Following these discussions, an IMF mission will visit Dhaka and submit its report to the IMF Executive Board. While Bangladesh has requested the tranche be released at the June Board meeting, final approval may extend into July.

Bangladesh’s current IMF programme, initially worth $470 million, began in January 2023. Under the interim government led by Muhammad Yunus, it was increased by $80 million in June 2025, bringing the total to $550 million.

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Five tranches totalling $364 million have been disbursed, leaving $186 million pending. The sixth tranche, originally scheduled for December 2025, was delayed as the IMF preferred to work with an elected government.

Highlighting domestic challenges, Khosru said the banking sector remains fragile, the capital market is struggling, and the tax-to-GDP ratio is low. To address these issues, the government is implementing election manifesto reforms, focusing on deregulation, improving ease of doing business, and reducing private sector costs.

He stressed the need to restart development projects suspended during the interim period due to financial constraints. “Financial reforms are essential to stabilise the economy and facilitate project revival. Upcoming budget proposals will reflect these priorities,” he said.

IMF Director Srinivasan said financing is closely linked to policy engagement. He noted that global uncertainties, including international conflicts, are affecting all countries, including Bangladesh, and reaffirmed the IMF’s commitment to supporting the government.

Khosru added that recent domestic measures had eased economic pressures during Ramadan and Eid. Transport fares remained stable, essential commodity prices held steady, and the garment sector operated smoothly with timely worker payments.

Concluding, the minister called for public patience and cooperation. He acknowledged that external factors, such as global conflicts and fuel supply disruptions, are beyond the government’s control but stressed that Bangladesh could overcome current economic challenges through collective effort, disciplined management, and continued reforms.

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