The International Monetary Fund (IMF) has warned that Bangladesh’s upcoming national election is creating a negative impact on the country’s economic prospects. Krishna Srinivasan, Director of IMF’s Asia and Pacific Department, highlighted that political uncertainty and election-related factors are contributing to a slowdown in economic growth. The IMF cited three key reasons for the downward GDP revision: tighter monetary policies and financial sector weaknesses limiting credit flow, uncertainty due to additional U.S. tariffs, and political instability surrounding the election. Bangladesh’s GDP forecast for the fiscal year has been revised down to 4.9 percent from earlier projections of 6.5 percent in April and 5.4 percent in June. Inflation could reach 8.5 percent by year-end due to supply shortages. The IMF emphasized the need for continued financial reforms and improved revenue collection, and a mission will soon review the ongoing $5.5 billion loan program.