Bangladesh in no rush to get IMF funds, says Finance Advisor Salehuddin

He says the country's macroeconomic situation is "fairly stable"

Finance Advisor Salehuddin Ahmed says the government is not desperate to secure the next instalment of the $4.7 billion loan package from the International Monetary Fund, or IMF, as Bangladesh's macroeconomic situation is "fairly stable" at present.

Speaking to reporters on Monday after a session of the Deputy Commissioners’ Conference at the Osmani Memorial Auditorium in Dhaka, he addressed concerns over the IMF loan conditions and the government’s approach to meeting them.

To access the $4.7 billion loan from the IMF, Bangladesh must implement a series of financial sector reforms. However, the financing agency has expressed concerns over the country’s slow progress in meeting key conditions, particularly regarding exchange rate adjustments and revenue collection.

Emphasising that these conditions cannot be fulfilled overnight, Salehuddin said, “We have tasks to complete, but we are not rushing. Some people think we are begging for money, but we are following the rules and meeting the conditions as required.”

“Just because the IMF makes a demand doesn’t mean we must comply immediately. We are a sovereign government and will proceed on our own terms. We have made it clear that we cannot implement everything at once.”

Initially, the IMF was expected to release $645 million from the fourth tranche by Feb 10 after a board meeting on Feb 5. However, that meeting has been pushed back to Mar 12, delaying approval of the funds.

Downplaying the urgency of securing IMF financing, Salehuddin said, “Our macroeconomic indicators are in a stable position. The current account is positive, the financial account is positive, and remittances are strong. We are not in a desperate rush for IMF funding.”

“We have told them we can wait. Instead, we suggested combining two tranches for disbursement in June, which would result in a larger sum.”

When asked whether this proposal originated from Bangladesh or the IMF, he said: “It was a mutual decision. The IMF also understands that implementing all conditions takes time. This is being worked out through negotiation.”