IMF reviews Bangladesh's economic reforms
The International Monetary Fund (IMF) has advised Bangladesh to increase its public investment and enhance governance in development initiatives to support the country’s economic expansion, according to officials on Monday.
In addition, the IMF has recommended that Bangladesh address the growing issue of non-performing loans (NPLs), transition to a fully flexible foreign exchange rate system, and reduce subsidies in public expenditure.
An IMF delegation currently visiting Dhaka held meetings with several key government institutions, including the Planning Division, Finance Division, Bangladesh Bank, National Board of Revenue (NBR), and the Ministry of Commerce.
The visit is part of the IMF’s ongoing review of Bangladesh's $4.7 billion loan programme, with a focus on the reforms tied to the fourth and fifth disbursements. The evaluation emphasizes areas such as tax revenue performance and the country’s net international reserves.
Following the meeting, Planning Division Secretary Iqbal Abdullah Harun told reporters that the IMF had sought updates on reform measures, particularly those related to public investment and the implementation of development projects.
A Planning Commission official noted that the IMF expressed concern over Bangladesh's comparatively low public investment levels, warning that inadequate funding for development initiatives could hinder long-term economic growth.
Meanwhile, a Bangladesh Bank representative said the IMF team also discussed the country’s progress on exchange rate flexibility, banking sector reforms, and the current state of banks that have recently received financial support, with particular attention to the persistent challenge of non-performing loans.
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