Bangladesh has asked the International Monetary Fund for a new lending arrangement and will exit the current $5.5 billion program, government officials said on Wednesday.
Officials said Dhaka will enter discussions with the IMF in the near term to establish a framework that will guide the design and conditionality of the new program. The talks are intended to set the size of any new support and the policy measures it would require.
According to government statements, the existing program was negotiated in a markedly different economic environment. Political changes, domestic pressures and global uncertainty have, officials said, made implementing some of the previously agreed reform measures more difficult.
Officials added that the government will scrutinize any IMF policy proposals to ensure they are consistent with national priorities and reflect current economic realities.
The IMF has confirmed that discussions are underway on reform priorities and the broader policy direction. An IMF staff mission is expected to arrive in the coming weeks to begin detailed negotiations on a potential new arrangement, including its size and the reform conditions that would accompany it.
Context for the move traces back to 2023, when Bangladesh entered the current IMF program under then Prime Minister Sheikh Hasina amid a severe foreign exchange crisis. That support package was later expanded to $5.5 billion and included reforms focused on revenue mobilization, rationalizing energy subsidies and introducing greater exchange rate flexibility.
Officials did not provide further specifics on timelines or the prospective magnitude of new financing. They emphasized the need for any new program to align closely with the country’s fiscal and economic priorities while taking into account the present domestic and global environment.
The coming IMF staff visit will mark the start of detailed technical talks to shape a possible new loan arrangement and its conditionality. Until those negotiations conclude, the exact contours and timing of any replacement program remain to be determined.