The International Monetary Fund (IMF) has suspended the next tranche of its loan to Bangladesh, citing insufficient progress in revenue and banking sector reforms. The disbursement, scheduled for June under a $5.5 billion program, has been delayed as key conditions remain unmet. The decision was confirmed by members of Bangladesh’s delegation attending the IMF and World Bank Spring Meetings in Washington, led by Finance Minister Amir Khasru Mahmud Chowdhury.

According to the IMF, Bangladesh failed to advance in areas such as revenue mobilization, banking discipline, subsidy reduction in the energy sector, and implementation of a market-based exchange rate. The organization has proposed initiating discussions on a new loan framework with revised conditions. IMF officials indicated that a review mission will not proceed until significant progress is achieved, making a June disbursement unlikely.

Economists warn that the delay could strain Bangladesh’s foreign reserves and budget support, potentially affecting financing from other development partners who view IMF assessments as key indicators. The IMF’s Asia-Pacific director emphasized that strong political will is needed to implement overdue reforms in fiscal and financial sectors.