United News of Bangladesh

Finance Adviser Dr 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 installment 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,” Dr Ahmed 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.” BGMEA briefs IMF on RMG risks, urges govt to prioritize FTAs to counter LDC graduation challenge Responding to a question on whether the government expects to receive the next IMF tranche during the tenure of the interim administration, Dr Ahmed 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, Dr Ahmed 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 November 15.  “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.” IMF to probe ‘NPL data concealment’ in Bangladesh’s banking sector 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, Dr 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 August 8, 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.  IMF-WB proposes unified debt management office in Dhaka to strengthen public debt governance On June 23, 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 January 27, 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 October 16, 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.    

Finance Adviser  Salehuddin Ahmed on Monday officially announced the successful completion of the budget preparation for 72 institutions for the current year using SABRE± software. SABRE± stands for the State-Owned Enterprises (SoE) and Autonomous Bodies (AB) Budget, Reporting and Evaluation database. The announcement was made at finance adviser's office in the Finance Division. Previously, the Finance Division used to prepare the budgets for 49 organisations offline, officials said. To ensure transparency and accountability in the financial and institutional management of State-owned Enterprises and Autonomous Bodies, the government is using this software, said the officials. This software is used for budget preparation, accounting of debt and contingent liabilities along with the fiscal risk analysis and evaluation of the overall management these institutions. The government is now working to bring approximately 400 state-owned and autonomous institutions under the SABRE+ database through this online system. Finance Adviser expects a quick end to NBR stalemate SABRE+ is an online database system developed by the Monitoring Cell of the Finance Division. It is used to prepare the budgets of State-owned Enterprises and Autonomous Bodies, calculate their debt and contingent liabilities along with to report and evaluate their overall performance. The system aims to ensure transparency, efficiency, and sound financial management by simplifying the processes of budget preparation, accurate accounting of assets and liabilities, evaluation, and reporting through a digital online platform. SABRE+, which was launched on a trial basis in September 2023, began its journey by piloting in 12 institutions in the last fiscal year. In the current 2024-25 fiscal year, it has played a major role in data-driven decision-making for budget preparation for 72 organisations, calculating debt and contingent liabilities for 101 organisations, assessing fiscal risk, and evaluating the performance of 20 organisations. The Application Programming Interface (API) of SABRE+ with iBAS++ allows for the automatic exchange of data within national financial records. This ensures coordination, reduces duplication of work, and facilitates real-time monitoring of financial flows. In the current fiscal year, 72 State-owned Enterprises and Autonomous Bodies have submitted their budgets through SABRE+. The transition from an offline to an online system has made the budget process more accurate along with has enhanced transparency and accountability in financial flows.

The government will import rice and LNG to meet the demands of the domestic market, it's been decided. The Advisors Council Committee on Government Purchase (ACCGP), in a meeting with Finance Advisor Dr Salehuddin Ahmed in the chair, approved two separate proposals in this regard. As per a proposal, moved by the Ministry of Food, the Food Directorate will import 50,000 Metric Tons (MT) of non-basmati parboiled rice from India through an international open tender. Bagadiya Brothers Limited of India will supply the bulk rice at a cost of Tk 275.30 crore, with each kg at Tk 55.06. Bangladesh Oil, Gas and Minerals Corporation-Petrobangla will import one cargo of LNG from the international spot market through quotation. Excelerate Energy PLC of United States will supply the LNG cargo at a cost of Tk 752.50 crore, with each MMBtu at $15.69. After the meeting, Finance Advisor Dr Salehuddin Ahmed told reporters that the government will not bring any change in the duty structure of essential commodities until the end of the upcoming month of holy Ramadan which is expected to begin from March 1. No change in duties until Ramadan ends: Finance Adviser Responding to a question on ensuring adequate supply of essential commodities at affordable price during the Ramadan, the advisor said that the government had already imported chickpeas, lentils, and dates. The price of Soybean oil has come to a reasonable level. “If necessary, the government will take further measures in regard to the price of soybean oil”, he said. He said that the government has been giving priority on market monitoring. “The market monitoring has to be intensified. Only application of Consumer Protection Act is not enough to contain the prices”. He mentioned that the price of onion has already come down to Tk 40 per kg from Tk 200. In our country, prices of goods frequently go up and down while prices remain stable in developed countries.

The government won’t change duty  on any product until the Ramadan ends, said Finance Adviser Dr Salehuddin Ahmed on Tuesday. He made the remark while talking to reporters after a meeting of the Cabinet Committee on Government Purchase at the Secretariat. Replying to a question over the supply of essentials and prices during Ramadan, he said, "Gram, pulses, dates have already been imported. Soybeans have also become somewhat tolerable. If necessary, we will decide on soybeans again.” He stressed the need for market monitoring to keep prices of commodities at tolerable level saying that only the Consumers’ Right Protection Act won’t work. Keep prices under control during Ramadan: CA to officials Asked whether duty will be imposed once onion is imported afresh, he replied, “We will no longer change any duty structure till Ramadan ends. Messages have been given.” The Finance Adviser said a special Open Market Sale (OMS) will start to keep the prices of rice at tolerable level as rice prices are soaring. He said, “We have kept an eye so that the prices of rice don’t’ shoot up due to the middleman, it’s a major concern. “ The adviser said the Ministry of Food has been instructed to start importing rice from anywhere to boost stock.

Finance Adviser Dr. Salehuddin Ahmed on Tuesday said the government expects commitments of around $6 billion from development partners, including the World Bank and IMF, by next June. “Following our discussions with the development partners in Washington, we’re expecting around $6 billion from the development partners by next June,” he stated. Dr. Salehuddin made this comment after an IMF Mission, led by IMF Country Representative Jayendu De, met him at his office at the Bangladesh Secretariat. The third review mission of the IMF arrived in the capital today to assess progress in meeting the conditions for releasing the fourth tranche of the $4.7 billion loan agreement. In Washington, the Finance Adviser said discussions were held with the World Bank, IMF, the OPEC Fund, and the government expects some commitments by next June.  “We’re also expecting funding from ADB and OPEC Fund in the near future. The commitments will come, but the aid flow will not arrive all in one year,” he added. The Adviser noted that the IMF Mission is likely to return in March next year for further discussions on their next course of action. Regarding the ongoing $4.7 billion loan package, he said $1.11 billion is expected to be released this time. The IMF Mission’s visit will focus primarily on the revenue sector, fiscal deficit, growth, and inflation, according to Dr. Salehuddin.  “They will also evaluate the strategies we’ve undertaken so far and those planned for the coming days. The IMF Mission will hold discussions with the Bangladesh Bank on banking reforms, default loans, depositor stress, and other issues,” he said. Dr. Salehuddin emphasized that economic stability has improved, although not entirely.  “Now is the time to attract investments and encourage foreign donors to contribute,” he said. He noted that the foreign exchange rate is relatively stable. Although some banks required liquidity support, Islami Bank, the largest private sector bank, is recovering, and other banks are expected to gradually stabilize. Dr. Salehuddin pointed out that inward remittance and export growth remain strong, while imports are lower, particularly in capital machinery, due to restrictions. “We are considering possible actions to address this situation,” he added. The IMF Mission will stay in Bangladesh for several days, according to the Adviser.  “We assured them that all measures we take will benefit the country in the long term,” he said, adding that the government avoids taking decisions that could create challenges for future administrations. Bangladesh Bank to maintain database tracking ownership of bank shares  “All measures are thoroughly scrutinized and well-considered. The IMF Mission is also convinced,” he stated. Dr. Salehuddin, a former central bank governor, expressed optimism that the IMF would set realistic targets beneficial for the country’s economic development. When asked, he said additional funding would be considered after discussions on the current loan package.  “We are discussing the ongoing loan package now and will consider seeking extra funds later,” he said. The Adviser added that the government’s reform initiatives, such as banking and revenue sector reforms, require foreign funding, as well as measures to address the trade deficit and current account balance.  “We have already approached the World Bank in this regard,” he said. The IMF review mission will leave on December 17. Bangladesh has received three installments under the IMF loan agreement so far, with the fourth installment expected to be released in December. EU, Bangladesh discuss ILO Conventions, money recovery On June 24 this year, the IMF approved the release of $1.11 billion as the third tranche of Bangladesh’s $4.7 billion loan.