The International Monetary Fund (IMF) has announced that discussions with Bangladesh on a potential new loan will continue over the next few months. The talks will focus on the size of the loan, the scope of the program, and the reform commitments tied to it. The statement followed a five-day visit to Dhaka by an IMF mission led by Ivo Krznar, which concluded on Thursday. The mission reviewed Bangladesh’s recent economic and financial conditions and discussed the government’s reform priorities.

According to the IMF, Bangladesh’s economic growth may slow to 3.5 percent, and could fall below 3 percent in the medium term if fiscal and banking sector pressures persist. The mission noted that inflationary pressures, rising subsidy costs, and external balance challenges have intensified due to higher global commodity prices and supply disruptions linked to the Middle East conflict. However, remittance inflows remain strong. The IMF emphasized the need for stronger revenue collection, rational subsidy reforms, and targeted social protection to support vulnerable groups.

The IMF also recommended maintaining tight monetary and prudent fiscal policies to control inflation and rebuild reserves, and implementing the 2025 crawling peg exchange rate system to enhance external stability.