Washington: Bangladesh needs to persist with crucial reforms, particularly in fiscal areas, according to Krishna Srinivasan, director of the Asia and Pacific department of the International Monetary Fund (IMF). He emphasized the importance of revenue mobilization and financial sector adjustments during a press conference at the IMF headquarters in the United States.
According to Bangladesh Sangbad Sangstha, Srinivasan confirmed that an IMF team is scheduled to visit Bangladesh soon to conduct the next review of the ongoing US$5.5 billion credit programme. He highlighted the necessity for Bangladesh to focus on these reform areas to ensure the programme’s success. The IMF’s Regional Economic Outlook for Asia and Pacific, released recently, projects a modest economic recovery for Bangladesh in the fiscal year 2025-26 (FY26), with an anticipated GDP growth of 4.9 percent, up from 3.8 percent in the previous fiscal year.
In addition to GDP growth forecasts, the IMF provided projections for inflation rates in Bangladesh. The multilateral agency expects inflation to decrease to 8.42 percent in FY26, with a further decline to 5.06 percent in the subsequent fiscal year. However, the Washington-based lender also pointed out several challenges that need attention, such as better reform implementation and a slower-than-expected reduction in inflation.
The IMF expressed concerns about constraints in energy supply and potential trade disruptions due to global policy uncertainties. These factors are deemed critical for Bangladesh’s economic stability and future growth prospects.