IMF says Bangladesh's reform progress positive, urges faster implementation

Finance Adviser Dr. Salehuddin Ahmed said Tuesday that the International Monetary Fund (IMF) has expressed overall satisfaction with Bangladesh’s ongoing economic reforms, while stressing the need to accelerate progress in several key areas.

Speaking to reporters after chairing meetings of the Advisers Council Committees on Economic Affairs and Government Purchase at the Secretariat, he said the IMF views Bangladesh’s economic situation as “generally good,” but wants quicker action on certain reforms.

“They think if some steps are taken a little faster, outcomes will improve,” he said.

Interest Rates and Banking Sector in Focus

Dr. Salehuddin noted that the IMF is particularly focused on the pace of policy changes, especially regarding adjustments to interest rates. Sudden hikes are not feasible, he said, adding that supply-side improvements must accompany any rate changes.

He also said the IMF has flagged concerns about the banking sector, placing five banks under observation due to governance challenges. “We need tough reforms to strengthen the sector,” he added.

Revenue Reforms On Track

The IMF is reportedly satisfied with progress at the National Board of Revenue (NBR), though it expects continued efforts on restructuring and capacity building. Full implementation will take time, the adviser said, but the framework for long-term reforms is being laid.

No New IMF Conditions

Dr. Salehuddin clarified that the IMF has not imposed any new conditions during the latest consultation. “They expressed satisfaction with the measures taken so far. The financial situation is largely under control,” he said.

Loan Programme Advancing

Bangladesh’s $4.7 billion IMF loan programme, approved in January 2023, is designed to support economic stability and structural reforms. With the fourth and fifth tranches released in June, total disbursement has reached $3.6 billion.

In June 2025, the IMF expanded the programme to $5.5 billion to help Bangladesh manage balance-of-payments pressures.

Dr. Salehuddin said the government may not complete all reforms within its tenure, but substantial groundwork will be achieved to ensure long-term fiscal and financial stability.