BD to shift from IMF loans to market-based financing: FinMin

He said this on Sunday at the inaugural ceremony of the World Investor Week 2026 arranged by the Bangladesh Securities and Exchange Commission (BSEC) at Krishibid Institution

Bangladesh must reduce its dependence on International Monetary Fund (IMF) financing and increasingly turn to domestic and international capital markets to mobilise funds, Finance Minister Amir Khosru Mahmud Chowdhury said on Sunday.

“We cannot depend on the IMF. Relying on the IMF... forget it,” Khosru said while addressing the inaugural ceremony of World Investor Week 2026, organised by the Bangladesh Securities and Exchange Commission (BSEC) at the Krishibid Institution in Dhaka.

The finance minister said Bangladesh’s financial architecture was undergoing a major transformation and that the country needed to build a market-driven financing system to achieve its ambition of becoming a $1 trillion economy by 2034.

Referring to the government’s decision to suspend its previous IMF programme, Khosru said the lender’s conditions were no longer acceptable to Bangladesh under the country’s current circumstances.

“You surely saw it, right? Earlier, I cancelled the IMF programme. Your condition is not acceptable to us,” he said.

The minister argued that "IMF financing alone would be insufficient to meet Bangladesh’s investment requirements. The money that the IMF would give is not enough to reach a trillion dollars. I need $50 billion every year.”

In June 2026, the government suspended the previous IMF programme, saying some of the lender’s conditions were no longer suitable for Bangladesh’s prevailing economic circumstances.

Turning to bonds and equities

Khosru said the government was receiving a positive response to its initiative to raise funds from both domestic and international markets through bonds and equities. He expressed optimism that the country’s capital market would undergo a significant transformation within a year.

According to the minister, international investors’ confidence in Bangladesh’s capital market has also started to improve, particularly following the government’s recent engagement with major Wall Street institutions during Prime Minister Tarique Rahman’s visit to the United States.

He said representatives of major global financial institutions had demonstrated a strong understanding of Bangladesh’s capital market and were closely monitoring developments in the country.

“They have confidence in the leadership, they have confidence in the deregulation that this government has announced, they have confidence in the clarity that is coming to this market, and they have confidence in the professionalism this market is showing right now,” Khosru said.

He added that several global financial institutions could become partners in developing Bangladesh’s capital market, with some expected to visit Dhaka in the coming months.

Bangladesh eyes international capital markets

The government is also preparing to tap international capital markets, including through a proposed dollar-denominated bond issue in New York, the finance minister said.

“We have to take the plunge. We have to send the message to Wall Street,” he said.

Khosru said Bangladesh could no longer afford to remain isolated from global capital markets and needed to establish itself as a credible destination for international investment.

The broader objective, he said, was to build a transparent, professionally managed and credible capital market capable of mobilising long-term domestic and foreign investment.

Such a shift would also help reduce the economy’s heavy reliance on bank financing and lower the cost of funds for businesses.

Businesses urged to raise funds through markets

The finance minister urged businesses to increasingly raise capital through the securities market rather than relying on bank loans carrying high interest rates.

He also criticised the continued use of taxpayers’ money to finance commercial activities, saying the government should focus on creating an enabling environment rather than acting as the primary financier of businesses.

“Find your money in the market, and make money to repay the government. The government cannot run enterprises and behave like a cheque writer,” Khosru said.

He said a stronger capital market would not only diversify sources of financing but also help create a more efficient and sustainable financial system capable of supporting Bangladesh’s long-term economic ambitions.