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Published : 30 Apr 2025, 12:11 AM
Finance Advisor Salehuddin Ahmed has said the government is unwilling to comply with certain conditions tied to the International Monetary Fund (IMF) loan.
“There are some issues raised by the IMF that we are unwilling to implement,” he said. He asserted that Bangladesh's macroeconomic stability remains strong despite the lack of IMF aid.
The advisor added, “Since this government came into power, we have not received any funding from the IMF. We are maintaining stability without their support. Therefore, they cannot impose conditions on us.”
“They have suggested fully opening up the foreign exchange market. We have responded that it cannot be entirely open, otherwise, the rate could reach 280 like Pakistan or 400 like Sri Lanka, and I cannot allow that.”
Bangladesh has already received three instalments of the $4.7b loan. Negotiations are under way regarding the fourth and fifth instalments.
However, two potential disbursement windows have passed, and the IMF has not released any further instalments since the interim government assumed office.
Clarifying that the exchange rate will not be opened entirely, Salehuddin said: “If we destabilise the reserves market, foreign investors will notice it. Private investors may think that Bangladesh is begging the IMF for funds. That would send the wrong message.”
“We will not accept anything just because they offer dollars. Pakistan received $7b, and their currency devalued to 280 rupees per dollar. Argentina received $20b. We do not want to burden ourselves with such debt.”
Describing his trip to the US, he said: “The visit was an overall success. I attended meetings with AIIB (Asian Infrastructure Investment Bank), the World Bank, IMF, IOM (International Organization for Migration), and the US Chamber of Commerce and Industry. We also spoke to the US government’s Energy Division, State Department, Labour Department, Agriculture Department, and Treasury Department.”
“I met with the IFC as well. Everyone spoke to us with a lot of interest. When I spoke to Ricardo, the IFC president, I saw my CV in front of him. This shows that they are monitoring Bangladesh.”
The former Bangladesh Bank governor signed three agreements with the World Bank: $650m for a Bay terminal, $200m for a social safety net programme, and $100m for the OpEx Fund in the private sector.
His talks with the IFC were also fruitful, leading them to consider investing $500m in the private sector.
He explained, “There is no cause for concern. Whether we join IMF’s projects or not is our decision to make. They are employees, some of them lost their jobs after failing to disburse funds in Indonesia. In Malaysia, Mahathir Mohamad took a strong stance, and many had to retire early.”
