The International Monetary Fund (IMF) has announced that discussions on a new economic reform programme for Bangladesh will begin in the coming months after concluding a high level mission to Dhaka at the request of the Bangladeshi Government. The move comes as the lender projects slower economic growth and highlights the need for continued structural reforms.

The IMF delegation, led by Ivo Krznar, Mission Chief for Bangladesh, held discussions with government officials on the country’s economic outlook and policy priorities. The proposed programme is expected to replace the previous IMF arrangement after the Government of Prime Minister Tarique Rahman opted to pursue a new framework that better aligns with its economic priorities.

Finance Minister Amir Khosru Mahmud Chowdhury recently confirmed that Bangladesh and the IMF had agreed on a broad framework for the new programme, with reforms to be introduced gradually in recognition of the country’s challenging economic environment.

The IMF noted that Bangladesh continues to face fiscal, financial sector and inflationary pressures, further intensified by higher global commodity prices and supply disruptions linked to tensions in the Middle East. It recommended stronger revenue mobilisation, subsidy reforms, prudent fiscal and monetary policies, continued exchange rate flexibility and comprehensive banking sector reforms to strengthen economic resilience.

Bangladesh is also seeking financial support from the World Bank and the Asian Development Bank as it works to stabilise the economy and strengthen foreign exchange reserves. The IMF emphasised that a credible reform agenda and sustained policy implementation will be essential to restoring macroeconomic stability and supporting long term, inclusive economic growth.