Resist any IMF conditions that undermine public interest: Speakers

Speakers at a human chain have called for mounting resistance against any International Monetary Fund (IMF) conditions that undermine the financial interests of ordinary people in Bangladesh.

They made the call during the human chain in front of the National Press Club in Dhaka on Monday to protest the stringent conditions imposed by the IMF on its loan to Bangladesh.

Rights-based civil society organisations, coordinated by the Equity and Justice Working Group (EquityBD) organised the event, said a Coast Foundation press release.

As Bangladesh’s reserves fell to $19.5 billion last year, the government requested a $4.7 billion loan from the IMF last year.

Agreeing to the request, the IMF decided to lend the amount in seven instalments over a period of seven and a half years until December 2026.

The global lender has already released two of the seven installments.

An IMF delegation is now in Bangladesh to negotiate the release of its third installment.

The IMF conditions tied to its loan are now causing concern, the speakers said.

One of the IMF conditions demands the discontinuation of subsidies on electricity, furnace oil, and gas to save dollars, they noted.

Highlighting the need to rationalise subsidies and crack down on financial crimes rather than imposing punitive measures on the public, they said that the IMF mission is not addressing critical issues like capital flight and money laundering, nor suggesting ways to increase tax revenue. Instead, they are recommending increasing indirect taxes, placing a heavier burden on ordinary citizens.

Rezaul Karim Chowdhury from EquityBD emphasised that subsidies for electricity, oil, and gas are crucial because they benefit the poor and ensure food security through agricultural support.

He criticised the IMF's recommendation to cut subsidies, suggesting instead that the government should focus on reducing capital flight.

Badrul Alam from Bangladesh Krishok Federation pointed out that the IMF's lack of concern for bankruptcy and capital flight raises questions about their intentions.

He suggested that the stringent conditions might undermine food security by discouraging agricultural production.

Representatives from Water Keepers, NDF and COAST Foundation also attended the event.