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DHAKA, Dec 03, 2024 (BSS) – Finance adviser Dr Salehuddin Ahmed today said that the government is expecting commitments of around $6 billion from the development partners including from the World Bank and the IMF by next June.

“Following our discussions with the development partners in Washington, we’re expecting around $6 billion from the development partners by next June,” he said.
The finance adviser said this after an IMF Mission, led by IMF Country Representative Jayendu De, met him at his office at Bangladesh Secretariat today.

The third review mission of the IMF arrived in the capital today to assess the progress in meeting the conditions for releasing the fourth tranche of the $4.7 billion loan agreement. 

Dr Salehuddin said in Washington, they have discussed with the World Bank, IMF, and OPEC Fund and they expect such amount hopefully by next June. “We’re also expecting funding from ADB and OPEC Fund in the near future,” he added. 
He went on saying, “The commitments will come, but the aid flow would not come in just one year ….”

The adviser said the IMF Mission is again likely to come in March next year to hold discussions about their next course of actions.

About the developments of the ongoing $4.7 billion loan package, he said that they are expecting to get $1.1 billion this time, likely in February-March, 2025. 

He said the IMF Mission has come this time to mainly look at the revenue sector alongside fiscal deficit, growth, inflation.

“What sorts of strategies we’ve taken so far and what we will undertake in the coming days…discussions will be held in this regard. The IMF Mission will also talk with the Bangladesh Bank over banking reforms, default loans, stress of the depositors and other issues,” he added.

The finance adviser said on the whole, they have argued that stability has come although not fully. “Now time has come for making investments and the foreign donors to come in,” he said. 

He said the foreign exchange rate is now not fluctuating too much, although some banks needed liquidity support, but Islami Bank, the biggest bank in the private sector, has been rebounding while the other banks hopefully would bounce back gradually.

Dr Salehuddin said the inward remittance flow is very good, the export growth is good, but imports are a bit less as the import of capital machineries is a bit less due to some restrictions.

 “We’re thinking what can be done in this regard,” he added. 
On the whole, he said the IMF Mission would stay here for some days.

 “We’ve told them that whatever measures we take, those would be beneficial for the country in the future,”

He said the government would not take any measure whimsically which would put the successive government in discomfort. “We’ll take measures after thorough scrutiny and proper thinking. They (IMF Mission) are also convinced,” he said. 

Dr Salehuddin, also the former central bank Governor, said hopefully the IMF would give such targets which would be for the sake of the country’s economic development.

Answering to a question, he said they would seek extra fund after discussions.

“Now we’re discussing about the ongoing loan package, then we would consider seeking the additional funding,” he added.

The finance adviser said the government’s reform initiatives like the banking sector and revenue sector reforms have cost entails and need foreign funding as well as addressing the trade deficit and in the current account balance. “We’ve already approached the World Bank in this regard,” he said. 

The IMF review mission is expected to leave on December 17.

Bangladesh has received three installments under the IMF loan agreement so far.
On 24 June this year, the IMF approved the release of $1.11 billion as the third tranche of Bangladesh's $4.7 billion loan.