IMF to decide Bangladesh’s next loan instalment after formation of political govt: Salehuddin

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 instalment 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 the 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, reports UNB.

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."

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.

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 instalments remain tied to policy performance benchmarks and structural reforms.

The IMF will delay disbursing the sixth tranche until the next national election and the newly 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 stated that they expected the release of the sixth and seventh tranches in June 2026.

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, to meet the balance of payment shortage.

The programme 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 the overall economy of Bangladesh.