Not just Pakistan! Bangladesh to get $ 1.3 billion from IMF; Seeks $ 762 million growth in support

The International Monetary Fund (IMF) on Wednesday confirmed that Bangladesh requested the unit for an additional financial assistance of $ 762 million, as the country struggles with growing macroeconomic challenges.If this request, if given, the total IMF assistance to Bangladesh will reach about $ 4.1 billion to Bangladesh under a mixture of credit and stability programs.“Between the important macroeconomic challenges, the authorities requested an increase in IMF financial assistance to Bangladesh under the ECF and EFF system, requesting an increase of 567.2 million (about $ 762 million) in IMF financial assistance,” IMF Mission Head for Bangladesh said Chris Pepazorgeau, said PTI said.The IMF plans to complete the fourth evaluation of a $ 1.3 billion lending program of $ 1.3 billion to Bangladesh in June. The IMF and Bangladeshi officials reached an employee level agreement to meet the expanded credit facility (ECF), extended fund facility (EFF), and flexibility and stability facility (RSF) to meet the third and fourth reviews combined. The agreement is still waiting for approval from the IMF Executive Board, and the full exchange rate is accidental on important pre -functions such as liberalization and tax reforms.If approved, SDR 983.8 million (about $ 1.3 billion) will be unlocked from completion of reviews, including SDR 650.5 million ($ 874 million) from ECF and EFF and SDR333.3 million ($ 448 million) from RSF.Explaining the reason behind the assistance, the IMF said that the Bangladeshi economy is under considerable stress, as its GDP growth slowed down to 3.3 percent year-on-year in the first half of the financial year of 2024-25. While a slight rebound of 3.8 percent for the whole year is estimated, the pressure is high due to external financing needs and domestic instability.Inflation, which reached the first double digits in the financial year, is now expected to fall by about 8.5% by the end of the year. However, the IMF warned that there is a global uncertainty, citing issues within the banking sector.To resolve challenges, the IMF has urged long-term structural reforms, as well as close-term policy measures. These include strengthening governance, improving transparency, and increasing the commercial environment to attract foreign investment and to diversify exports beyond the prepared costumes.The IMF said, “Institutional reforms to enhance Bangladesh Bank’s freedom and governance will be necessary for long -term macroeconomic and financial stability and effective implementation of comprehensive financial sector reforms.”