The International Monetary Fund (IMF) has expressed confidence in Bangladesh’s long-term economic prospects, noting that with sustained reforms and strategic investments, the country is well-positioned to overcome current challenges and unlock stronger, more inclusive growth.
Concluding its mission to Dhaka, the IMF team, led by Chris Papageorgiou, acknowledged ongoing global and domestic pressures but emphasised the potential for recovery through bold policy action. “Bangladesh has the tools and commitment needed to strengthen its economy and attract greater investment,” said Papageorgiou.
Discussions are continuing ahead of the IMF-World Bank Spring Meetings, with hopes for a staff-level agreement on the third and fourth reviews of Bangladesh’s Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF).
The IMF highlighted several key opportunities for progress, such as Tax and Fiscal Reform, Financial Sector Stability, Exchange Rate Flexibility, Investment and Export Diversification and Climate Resilience.
Simplifying and broadening the tax base can significantly raise public revenues, allowing for greater investment in infrastructure and social sectors. Efforts to improve governance, transparency, and risk-based supervision in the banking sector were praised, with calls to fast-track legal reforms for orderly bank restructuring. Allowing more flexibility in the exchange rate can improve external competitiveness and rebuild foreign exchange reserves. Improving the investment climate and expanding beyond ready-made garments are key to long-term growth. Bangladesh’s focus on climate-responsive reforms and resilient infrastructure was welcomed as essential for sustainable development. The IMF also underscored the importance of maintaining a tight monetary policy to manage inflation and support macroeconomic stability.
The IMF team thanked the government and stakeholders for their cooperation, meeting with Finance Advisor S. Ahmed, Bangladesh Bank Governor A. Mansur, and other senior officials.
