The Finance Minister has said that the International Monetary Fund (IMF) has agreed that Bangladesh's economic reforms should be implemented in phases. The two sides held positive discussions on the ongoing reform agenda, policy coordination, and measures to ensure economic stability.
Finance Minister Amir Khasru Mahmud Chowdhury has said that Bangladesh will implement economic reforms gradually, taking into account the country's economic realities. He said sweeping changes cannot be introduced overnight and that the International Monetary Fund (IMF) agrees with this approach. The government will prioritize reforms based on when they are needed most.
The finance minister made the remarks to reporters on Monday after a meeting at the Secretariat with IMF Mission Chief for Bangladesh and Hong Kong, Eve Czar, who leads the Fund's mission on Bangladesh.
Responding to questions, the minister said the IMF has acknowledged the government's financial reform agenda, political responsibility, and approach to economic policymaking. The two sides also held constructive discussions on the framework and implementation of a new IMF loan programme.
He said both parties now have a clear understanding of the principles that will guide the proposed programme. According to the minister, the IMF has agreed with the policy framework and proposals presented by the government.
Amir Khasru Mahmud Chowdhury also stressed that an elected government is accountable to the people and that all economic decisions will be made while protecting public interests. He said the IMF has recognized and respected this political responsibility.
The finance minister noted that the IMF expressed satisfaction with the progress made during the current government's first four months, particularly in financial sector reforms, improvements in the stock and capital markets, and revenue collection. He claimed that, for the first time in the country's history, tax collection had recorded significant progress within just four months. Discussions also focused on the government's plan to further increase the tax-to-GDP ratio.
On the issue of subsidies, the minister said no specific conditions or detailed discussions have yet taken place. At this stage, talks have focused mainly on establishing the foundation of the new programme, while detailed negotiations will be held in later phases.
Asked whether the implementation of a new pay scale for government employees had been discussed with the IMF, the finance minister said the issue was not raised during Monday's meeting. However, he added that discussions on other issues have progressed satisfactorily.
Regarding the proposed new IMF loan programme, the minister said the IMF has outlined certain conditions, which the government plans to implement gradually and in phases. Discussions with the Fund are continuing, and further negotiations are expected during the World Bank's Annual Meetings in September or October.
He added that the IMF is satisfied with the reform initiatives undertaken by the current government, and the process of finalizing the new loan programme will move forward on that basis.
