Bangladesh Seeks IMF Support Amid Economic Challenges

Bangladesh is seeking a significant increase in financial assistance from the International Monetary Fund (IMF) amid mounting macroeconomic challenges. The nation has requested an augmentation of USD 762 million, raising the total support under various IMF arrangements to USD 4.1 billion.

An agreement at the staff level has been reached between the IMF and Bangladesh authorities on the necessary policies to complete the third and fourth reviews under several financial facilities. However, these agreements await approval from the IMF Executive Board, conditional on prior actions such as tax reforms and exchange rate liberalization.

Rising external financing needs and macroeconomic pressures have prompted this request for financial augmentation. The IMF stresses that immediate policy tightening is essential to addressing the external financing gap and inflation, while governance improvements are crucial for enhancing business conditions and diversifying exports.

(With inputs from agencies.)