Context:
The International Monetary Fund (IMF) will disburse $1.3 billion to Bangladesh in June 2025 after the completion of the fourth review of its $4.7 billion loan program.
Key Highlights:
- The fourth and fifth tranches will be released together, delayed earlier due to IMF’s insistence on exchange rate reforms.
- Bangladesh has agreed to adopt a crawling peg exchange rate system to increase currency flexibility.
Major Reforms and IMF Conditions
- Bangladesh government dissolved the National Board of Revenue (NBR).
- Two new revenue divisions have been created under the Ministry of Finance, meeting a key IMF condition.
- Agreements were finalized on:
- Currency exchange rate regime
- Revenue management frameworks
- Overall reform alignment
Significance
- The move strengthens foreign exchange reserves, stabilizes the taka, and reinforces Bangladesh’s commitment to fiscal consolidation and transparency.
- It supports Bangladesh’s goal to sustain macroeconomic stability amid global economic challenges.
Recent Related News:
- In May 2025, the IMF approved a $1 billion loan to Pakistan under the Extended Fund Facility (EFF).
About the International Monetary Fund (IMF)
- Established: 22 July 1944
- Headquarters: Washington, D.C., USA
- Managing Director: Kristalina Georgieva
- Membership: 191 countries (190 UN member states + Kosovo)
