IMF Staff Concludes Visit to Bangladesh

IMF News, September 30, 2024

Source details

Press Release No. 24/350; September 30, 2024.
An IMF mission team led by Mr. Chris Papageorgiou visited Dhaka during September 24–30 to discuss recent developments and the authorities’ reform priorities.
The mission is an end-of-mission staff statement conveying preliminary findings; “This mission will not result in a Board discussion.”
The IMF team “held meetings with Finance Advisor Saleh Uddin Ahmed, Bangladesh Bank Governor Ahsan Mansur, and other senior officials,” and met with “representatives from the private sector, think tanks, bilateral donors, and development partners.”

The mission expressed sympathy: “We are deeply saddened by the loss of lives and injuries during the recent public uprising and stand in solidarity with the people of Bangladesh during these difficult times.”
Political and security developments: “The timely formation of an interim government has helped stabilize political and security conditions, fostering a gradual return to normalcy in the economy.”
Macroeconomic conditions:
- “Economic activity has slowed markedly.”
- Inflation remains “at double-digit levels.”
- Major floods have contributed to economic turbulence.
- “The deterioration in the balance of payments has put additional pressure on foreign exchange reserves.”
- Fiscal and public finance pressures: “Tax revenue collection has declined, while spending pressures have increased, and domestic payment arrears have accumulated.”
- Financial sector: “Financial sector vulnerabilities have become more pronounced.”

The IMF and the authorities discussed policies and reforms needed to address emerging challenges; IMF staff stated support for authorities’ efforts to:
- “initiate policy adjustments, including continued monetary tightening and rationalizing non-priority capital spending, in response to these challenging circumstances.”
IMF commitment:
- “The IMF remains a steadfast partner, fully committed to supporting Bangladesh and its people.”
- The IMF will continue to work with the authorities “within the framework of the ongoing IMF-supported program” to advance a reform agenda that aims to:
- “ensure macroeconomic stability,”
- “promote job creation,”
- “strengthen institutions,” and
- “foster strong, sustainable, and equitable growth.”
- The statement: “We welcome the authorities’ renewed commitment to implementing the reforms under the IMF-supported program.”
Program engagement:
- “Discussions on how to proceed with program reviews will continue during the upcoming 2024 IMF-World Bank Annual Meetings.”

The views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
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IMF Press Release No. 24/350 — September 30, 2024.