IMF to decide Bangladesh’s next loan instalment after formation of political govt: Adviser

Finance Adviser Salehuddin Ahmed on Sunday said the International Monetary Fund (IMF) is continuing its review of Bangladesh’s progress under the ongoing loan programme and a final decision regarding the next instalment is expected only after the formation of the next political government.

“The IMF has acknowledged that the government has been working to address macroeconomic challenges and implement reforms. They have some recommendations, particularly on revenue generation. We agree that tax revenue remains low, and there are structural reasons for this,” Salehuddin said.

Talking to reporters at Bangladesh Secretariat after holding a series of meetings, the adviser said the government has already undertaken necessary reforms and is consolidating the progress before the upcoming general election, scheduled for February 2026.

He said tax compliance among citizens remains weak, while the temporary suspension of the new National Board of Revenue (NBR) for two months also had an impact on revenue collection. “We are working to resolve these issues.”

According to the adviser, the IMF has also emphasised increasing expenditure in the social sectors, especially health, education and social protection. “On food security, we are performing reasonably well.”

Responding to a question on whether the government expects to receive the next IMF tranche during the tenure of the interim administration, Salehuddin said the focus now is to maintain stability and hand over a well-structured economic reform framework to the elected government.

“We will consolidate the work done so far. Of course, we cannot complete everything. Major reforms such as tax restructuring, public sector pay commission review, and strengthening the banking sector will continue. These will be carried forward by the next government,” he said.

The adviser said Bangladesh has already submitted relevant reports to the IMF, and a review mission will visit the country again early next year. “The IMF will review again around the election period and then decide on disbursement. We have no objection to this. A stable political government is needed for sustained reform.”

Asked about recent remarks by the Bangladesh Bank Governor on certain policy proposals, Salehuddin declined to comment but said any major decision would be taken collectively by the government. “This is an internal matter of the Bangladesh government. It will go to the advisory council for consideration,” he said.

In response to a question, the adviser said he is scheduled to hold final discussions with the IMF on 15 November. “I have already had a virtual meeting with them. They said they are very happy with the overall economic direction. They acknowledged the efforts we have made and are making.”

The adviser also informed that an independent committee comprising economists has been formed to recommend reforms in the tax system.

He identified the banking sector as the most critical challenge in the economy. “Some reforms have already begun, and the rest will proceed gradually. These issues will also be handed over to the next government.”

Responding to whether the sixth installment of the IMF loan will be released during the interim government’s tenure, Salehuddin said the IMF will review progress again after the national election expected in February.

“They want to see how much the political government continues the reforms. That is important for them. So, after their review early next year, they will make a decision,” he said.

The $4.7 billion IMF loan programme, approved in January 2023, aims to support Bangladesh’s economic stability, strengthen fiscal reforms, and enhance resilience amid global economic pressures. Several tranches have already been disbursed, while further installments remain tied to policy performance benchmarks and structural reforms.

The IMF will delay disbursing the sixth tranche until the next national election and the new elected government assumes office.

The interim government that assumed power on 8 August 2024 three days after the Awami League regime was ousted amid a mass uprising has announced that the next general election would be held in February.

Finance ministry officials said that they were expecting the releases of the sixth and the seventh tranches in June 2026.

On 23 June, the IMF approved the release of the fourth and fifth tranches amounting to $1.3 billion, taking the overall amount of disbursement to $3.6 billion.

In June 2025, the IMF also increased the overall loan amount to $5.5 billion from $4.7 billion under the loan programme that began in 2023 under the AL regime in 2023 to meet the balance of payment shortage.

The progarmme period has also been extended by six months to 27 January 2027 from July 2026, following requests from Dhaka.

The interim government has already reduced the balance of payment pressure.

Driven by higher remittance and export earnings, the country’s gross foreign exchange reserves increased to $32 billion on 16 October, the highest in 31 months.

The latest IMF mission is also linked to the Article IV report, an annual consultation with its member countries on overall economy, on Bangladesh.