Finance Adviser Salehuddin Ahmed stated that Bangladesh is prepared to draft its budget independently if the IMF does not release its loan installment. He emphasized that the country is no longer dependent on the IMF or World Bank and cannot fully comply with IMF demands, such as letting the foreign exchange rate float freely. Doing so, he warned, could lead to volatility similar to Pakistan or Sri Lanka. He clarified that discussions are ongoing, and even without IMF funding, the country’s reserves remain stable.

Bangladesh’s delegation, led by Economic Advisor Salehuddin Ahmed, held multiple meetings with World Bank and IMF officials. The U.S. has asked Bangladesh to detail its plans for resolving tariff issues and trade deficits by increasing imports from America, including offering tariff-free access to select products. The IMF has demanded clear actions on making the currency exchange rate more flexible, increasing revenue collection, and reforming the banking sector before releasing further loan installments.

Due to slowing economic activity, the World Bank warns that an additional 3 million Bangladeshis may fall below the poverty line in 2025. According to its “Bangladesh Development Update,” the rate of extreme poverty—defined as living on less than $2.15 per day—could rise from 5% in 2022 to 9.3% by next year. The overall poverty rate may jump from 18.7% to 22.9%.

Bangladesh has signed two financing agreements with the World Bank totaling $850 million. Of this, $650 million is allocated for the Bay Terminal Marine Infrastructure Development Project and $200 million for a social protection enhancement initiative. These projects will run until 2031 and 2030 respectively.

The International Monetary Fund (IMF) has projected that Bangladesh will see an increase in dollar inflows during the current fiscal year, which is expected to ease pressure on the country’s current account deficit. According to the IMF, the growing size of the country’s GDP will contribute to an improvement in foreign currency inflows, helping to narrow the deficit in external accounts.

The report also notes that this improvement trend may continue into the next fiscal year, with the deficit likely remaining stable. Due to a dollar crisis, Bangladesh’s current account deficit had previously surged to 4% of GDP in the 2021–22 fiscal year. However, it decreased to 2.6% in 2022–23, and further declined to just 1.4% of GDP in the 2023–24 fiscal year.

U.S. Vice President JD Vance announced that the terms of a trade agreement between India and the United States have been finalized following a meeting with Indian Prime Minister Narendra Modi. “We want partners who are committed to producing things together with America—not just facilitating imports and exports,” Vance emphasized. He added that while U.S. partners may not need to replicate everything the U.S. does, they should share core objectives.

Bangladesh Medical University and Kunming Medical University of China have signed a Memorandum of Understanding, paving the way for a $138.2 million Chinese investment in Bangladesh’s healthcare sector. Professor Zhueshan highlighted the foundation laid by recent high-level meetings between the two nations for long-term collaboration in health and education. He emphasized the strengths of traditional and advanced Chinese medical education. Professor Dr. Mujibur Rahman Howlader said the agreement will significantly boost medical modernization through joint research, training, technology transfer, and infrastructure development.

A study by the Centre for Policy Dialogue (CPD) revealed that Bangladesh lost an estimated Tk 2.26 trillion in tax revenue in 2023 due to evasion. Corporate tax evasion alone accounted for half of the losses—around Tk 1.13 trillion. The causes include high tax rates, weak administration, a complex legal framework, and widespread corruption in the taxation system.

Bangladesh has not yet reached an agreement with the IMF regarding the fourth and fifth tranches of its $4.7 billion loan program. The IMF said discussions will continue, with possible disbursement by the end of June if conditions are met. The IMF noted a rise in non-performing loans (NPLs) and urged effective reforms. Currently, NPLs average 43% in state-owned banks and 16% in private banks—well above IMF targets of 10% and 5%, respectively.

Economic Adviser Dr. Salehuddin Ahmed said Bangladesh is working to reduce its trade deficit with the US by diversifying exports. He mentioned attempts to revive GSP privileges and highlighted planned discussions with the World Bank, ADB, IMF, and OPEC Fund regarding budget support and project financing. Potential deals may also be reached concerning the Rooppur Nuclear Power Plant, despite existing sanctions. Private sector partnerships, particularly in the energy sector, are also being explored.

A delegation led by Economic Adviser Dr. Salehuddin Ahmed will meet USTR representatives next week over a 37% retaliatory tariff. Adviser Bashiruddin said, “The cancellation of transshipment facilities will increase our costs by about BDT 2,000 crore. We’re engaged in round-the-clock talks.” He emphasized inflation is declining and purchasing power is improving, which may cushion families from rising product prices.

U.S. President Donald Trump has increased tariffs on Chinese imports to a staggering 245%. The White House cited China’s retaliatory actions, including a ban on exporting six heavy rare earth metals and magnets essential for military, aerospace, and semiconductor industries. The administration accused China of deliberately restricting critical materials like gallium, germanium, and antimony. The move is framed as part of Trump’s “America First” trade policy.

Investigations have revealed that S. Alam Group has acquired and occupied approximately 6,231 bighas of land across various regions of Bangladesh, with 5,000 bighas located in Chattogram alone. Authorities have also identified 17 luxury apartments in Dhaka and Chattogram linked to the group. The total estimated value of these assets stands at around BDT 64,000 crore. A central bank probe has found that S. Alam Group embezzled nearly BDT 2 trillion from several banks, part of which was allegedly laundered abroad, while other portions were invested in industries and land—violating the central bank’s regulations that prohibit purchasing land with commercial loans. The Financial Intelligence Unit has also traced properties under S. Alam’s name in Singapore, the British Virgin Islands, Cyprus, Canada, and Malaysia. Authorities have seized shares worth BDT 25,366 crore across multiple companies connected to the group.

Bangladesh’s foreign currency reserves have risen to $26.51 billion, driven by increased remittances and export earnings, according to central bank data. As of April 15, gross reserves stood at $26.52 billion, while reserves calculated under the IMF’s BPM6 method amounted to $21.18 billion. Reserves had dipped to $19.7 billion after a $1.75 billion payment to the Asian Clearing Union in March but have since rebounded.

NBR Chairman Md. Abdur Rahman Khan warned that commitments made under U.S. pressure to rationalize tariffs on certain imports will reduce Bangladesh’s tax revenues, especially as the IMF demands increased collections. He added that similar rationalizations in income tax structures could further decrease revenue. While tax rates for individuals and corporations will remain unchanged this year, efforts will be made to address existing inequities in the next budget.