Bangladesh and the International Monetary Fund (IMF) have agreed to begin work on a new reform-focused programme under the new government, following high-level virtual talks between Finance and Planning Minister Amir Khosru Mahmud Chowdhury and IMF Deputy Managing Director Nigel Clarke.
The discussion, held on May 21, focused on Bangladesh’s overall economic situation, progress under the ongoing IMF-supported programme, and future cooperation between the two sides, according to a Finance Ministry press release issued on Monday.
During the meeting, the finance minister thanked the IMF for its continued engagement and support for Bangladesh and recalled the “fruitful discussions” held during the recent World Bank-IMF Annual Meetings in Washington, DC.
He said the government had reviewed the issues internally following the Washington talks and reaffirmed Bangladesh’s commitment to maintaining macroeconomic stability and carrying out structural reforms.
However, Amir Khosru noted that the existing IMF programme had been adopted under a different economic and policy context, while subsequent domestic developments, changing global economic conditions and external uncertainties had created challenges in implementing some reforms.
He said the government was not stepping away from reforms, but rather wants to pursue a realistic and phased reform agenda that aligns with the country’s current economic realities.
“In view of the overall situation, discussions were held on undertaking a new IMF programme under the newly elected government,” the statement said.
The proposed programme is expected to include priority-based and implementable reforms within a realistic three-year timeframe, with reforms to be introduced gradually through a sequenced approach.
IMF Deputy Managing Director Nigel Clarke welcomed Bangladesh’s reform initiatives and the move toward a new programme.
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He expressed optimism that the IMF’s constructive and close engagement with Bangladesh will continue in the coming years.
Both sides agreed on the importance of quickly initiating work on a realistic and implementable new IMF programme and related reform measures, the statement added.