New York/Washington: Bangladesh seeks to add about $762 million in fiscal support amid major macroeconomic challenges, which provides the country with comprehensive financial aid under various arrangements, at about $4.1 billion, the International Monetary Fund said on Wednesday. Bangladesh staff and Bangladesh authorities have to complete the strategies of the third and third reviews (the strategies that require the completion of the third review) (EFF) and the Resilience and Sustainability Facilities (RSF).
The fund said in a statement that the agreement awaits approval from the IMF Executive Committee and is dependent on previous actions, including tax reform and full exchange rate liberalization.
In a major macroeconomic challenge, the authorities demanded an increase of SDR (special painting rights) of 567.2 million (approximately US$762 million) to IMF financial support for the IMF under the ECF and EFF arrangements.
PapageOrgiou added: “This increase will bring SDR 3.0356.5 billion SDR (approximately $4.1 billion) to the SDR 1 billion SDR (approximately $1.3 billion), which will bring the total financial aid of SDR 3.035 billion (approximately $4.1 billion).
Upon completion of the combined completion of the third and fourth comments, SDR 983 million (approximately US$1.3 billion) will be provided, including SDR 650.5 million (approximately US$874 million) for ECF and EFF, and SDR 333.3 million (approximately US$333 million) (approximately US$333 million) (approximately US$448 million (approximately US$448 million).
The IMF noted that Bangladesh’s economy was under pressure due to ongoing challenges and external financing requirements.
It said that as announced in December 2024, authorities demanded a strengthened IMF support of about $760 million to help maintain macroeconomic stability and to strengthen the country’s resilience to external shocks.
In the first half of fiscal year 25, real GDP growth slowed to 3.3% (YOY) due to interference from the mass uprising; however, the second half is expected to rebound throughout the fiscal year to reach 3.8%. ”
“Inflation has begun to drop by double digits, it has begun to decline, and the inflation rate is expected to be around 8.5% (YOY) by the end of fiscal 25. Still, the IMF says domestic factors such as banking pressure and the tendency to global uncertainty raise the risk of the drawbacks.
It said that recent policy tightening is crucial to address emerging external financing gaps and support the continued decline in inflation.
The IMF said that strengthening governance and transparency is crucial to improving the business environment, attracting foreign direct investment and expanding its export base into the ready-made clothing sector.
The agency said institutional reforms to strengthen the independence and governance of Bangladesh’s banking is crucial to ensure long-term macroeconomic and financial stability and to effectively implement broader financial sector reforms.
