Dhaka: Finance adviser Dr Salehuddin Ahmed announced today that the Bangladesh government anticipates commitments totaling approximately $6 billion from development partners, including the World Bank and the International Monetary Fund (IMF), by June of next year. This statement followed a meeting with an IMF Mission led by IMF Country Representative Jayendu De at the Bangladesh Secretariat. According to Bangladesh Sangbad Sangstha, the third review mission of the IMF has arrived in the capital to evaluate the progress in fulfilling conditions necessary for the release of the fourth tranche of a $4.7 billion loan agreement. Dr Ahmed noted that discussions held in Washington with the World Bank, IMF, and OPEC Fund have led to these expected commitments, which are hoped to materialize by June. Additional funding from the Asian Development Bank (ADB) and the OPEC Fund is also anticipated in the near future. Dr Ahmed emphasized that although commitments are forthcoming, the actual aid flow will not occur within a single year. He mentioned that the IMF Mission is expected to return in March of the following year to discuss subsequent steps. Regarding the ongoing $4.7 billion loan package, Bangladesh expects to receive $1.1 billion by February-March 2025. The IMF Mission's current visit primarily focuses on the revenue sector, fiscal deficit, growth, and inflation. Discussions will also cover strategies implemented and planned for the future. Furthermore, talks with the Bangladesh Bank will address banking reforms, default loans, depositor stress, and other related issues. Dr Ahmed asserted that while complete stability has not yet been achieved, the current environment is conducive to investments and foreign donor involvement. He remarked on the relatively stable foreign exchange rate, the rebounding of Islami Bank, and the positive trends in inward remittances and export growth, although there are some restrictions on imports, particularly of capital machinery. He assured that any measures taken would be carefull y considered to ensure future benefits for the country, avoiding any actions that might inconvenience subsequent governments. Dr Ahmed expressed optimism that the IMF would set targets conducive to Bangladesh's economic development. In response to inquiries about additional funding, Dr Ahmed indicated that discussions regarding the ongoing loan package are currently the priority, with consideration for extra funding to follow. He highlighted the government's reform efforts in banking and revenue sectors, which require foreign funding to address trade deficits and current account balance issues. The IMF review mission is expected to conclude its visit by December 17, with Bangladesh having already received three installments under the existing IMF loan agreement. On June 24 of this year, the IMF approved the release of $1.11 billion as the third tranche of Bangladesh's $4.7 billion loan package.
