Kathmandu. The International Monetary Fund (IMF) has said bangladesh’s economy continues to face problems and needs large amounts of funding from outside. The IMF team held two weeks of discussions in Dhaka from April 6 to 17 but could not reach an agreement on the next tranche of $4.7 billion loan.
The IMF has clearly stated that Bangladesh needs a concrete plan to increase its income. That is, the tax-GDP ratio and currency exchange should be made more flexible. These two cases are still pending.
This time, the IMF did not give any direct consent. But it was made clear through indications that it could be the “last chance.” “Reforms are needed, otherwise the problem will escalate,” the IMF said. Talks between the two sides will resume during the SPRING meeting of the IMF-World Bank in Washington. Where the agreement is expected.
Chris Paparazzio, head of bangladesh mission at the IMF, said the country’s economy was in a difficult situation. “Bangladesh is facing a lot of challenges, and there is growing uncertainty all over the world. ’
In the first six months of the financial year 2024-25, the GDP growth rate has come down to 3.3%. Which was 5.1% last year. Inflation stood at 9.4% in March. Whereas the central bank’s target is 5-6%.
Speaking at a news conference in Dhaka, IMF Resident Representative Jayndu Dey said the talks would continue in Washington next week. “If all goes well, we will try to give the next instalment of the loan before the end of June,” he said. – Agency
