IMF team in Dhaka, loan talks begin tomorrow

A 12-member mission from the International Monetary Fund (IMF) has arrived in Dhaka to begin preliminary discussions on a new loan programme for Bangladesh.

Led by Ivo Krznar, deputy division chief of the IMF’s Monetary and Capital Markets Department, the delegation will hold meetings with officials from Bangladesh Bank, the Finance Division and other government ministries on Sunday.

The team is also scheduled to meet Finance Minister Amir Khasru Mahmud Chowdhury at the secretariat.

The government is seeking $4-4.5 billion under a new three-year programme to support macroeconomic stability, ease external financing pressures and advance economic reforms.

The discussions are expected to cover key economic indicators, tax and VAT reforms, revenue mobilisation, financial sector reforms, the banking sector, and the fiscal impact of a proposed new public-sector pay structure.

The IMF will also review developments in the power and energy sectors, including capacity payments, energy subsidies and financial flows.

Finance ministry officials said the talks will help identify the possible priorities and conditions for the proposed loan programme, while allowing the government to present its recent reform progress.