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Published : 04 Jun 2026, 12:53 AM
Bangladesh has formally requested a new loan programme from the International Monetary Fund (IMF), seeking to move beyond the lending arrangement approved under the ousted Sheikh Hasina government.
The request was made through a letter seeking a new IMF-supported financial arrangement to back the country's economic reform agenda, according to a statement issued on Wednesday by IMF Mission Chief for Bangladesh Ivo Krznar.
The statement did not specify how much financing Bangladesh has sought.
"The Bangladeshi authorities have requested a new IMF financial arrangement to support their economic reform programme," Krznar said.
"IMF staff are engaging with the authorities on their reform agenda and policy priorities as part of the Fund's consideration of possible next steps."
The BNP government led by Tarique Rahman had previously indicated that it did not want to continue with the loan programme negotiated by the previous government.
The latest request formally initiates discussions on a successor arrangement.
Krznar noted that Bangladesh's current IMF-supported programmes under the Extended Credit Facility (ECF), Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) had served as an important policy anchor during a difficult period.
However, he said the country's macroeconomic and political circumstances had changed substantially since the programme was approved in January 2023.
"The authorities now face a more complex set of challenges. Banking-sector weaknesses and low revenue mobilisation underscore the need for a renewed and sustained reform effort," he said.
According to the IMF statement, "The authorities' request for a successor arrangement provides an opportunity for the Fund and the authorities to agree on a potential programme that both reflects the current challenges and incorporates the new authorities' objectives and priorities."
Krznar said any new arrangement would need to be based on Bangladesh's balance-of-payments needs and strong policy commitments anchored by a credible reform agenda.
He also said IMF officials were planning a visit to Bangladesh in the near future.
"Planning is under way for a staff visit to Bangladesh, which would allow IMF staff to take stock of recent economic developments, engage with the authorities on their policy priorities, and assess the outlook and reform challenges."
"Discussions about the parameters of a potential new IMF-supported programme -- including its size and related reform commitments -- would take place in the context of a subsequent programme negotiation mission."
Krznar added: "The IMF remains a committed partner to Bangladesh in its efforts to secure lasting macroeconomic and financial stability, strengthen resilience, and support strong, inclusive growth."
Bangladesh first secured a $4.7 billion IMF package in early 2023 after extensive negotiations aimed at addressing mounting economic pressures during the Awami League government's tenure.
In June 2025, the interim government led by Muhammad Yunus increased the package by $800 million, taking the total programme size to $5.5 billion.
Of that amount, Bangladesh has so far received $3.64 billion in five instalments.
A further $1.86 billion remains undisbursed.
The sixth tranche and remaining funds were originally scheduled for release in December last year.
At the time, the IMF said discussions on the remaining disbursements would take place with an elected government.
Before releasing the remaining funds, the IMF has sought progress on loan conditions, including reforms in revenue collection and other sectors.
However, implementation has fallen short in several areas.
After taking office, the BNP government considered seeking an additional $2 billion from the IMF to help tackle the country's energy challenges.
At the same time, it moved away from some institutional reform measures required under IMF conditions, prompting reports of IMF reluctance to release the remaining funds under the current programme.
A Bangladeshi delegation led by Finance Minister Amir Khosru Mahmud Chowdhury attended the latest World Bank-IMF annual meetings in Washington and held discussions on the issue, but no breakthrough was achieved.
On Apr 18, however, the finance minister said the IMF had shown a "positive" attitude towards continuing engagement.
Following a meeting with IMF Deputy Managing Director Nigel Clarke in Washington, he told reporters: "Discussions are still under way. The unresolved issues will be resolved through the ongoing talks."
Subsequent remarks by the minister suggested progress remained limited.
He indicated that both continuing the existing programme and negotiating a new one could expose the government to additional pressure arising from IMF conditions.
On May 11, Amir Khosru publicly said some IMF conditions attached to the current programme were not "suitable" for Bangladesh's economy.
He argued that the government could not accept all IMF demands because of its "responsibility" to the public.
"Most development partners agree with the BNP's election manifesto. They are my development partners. If they do not agree with me, I cannot move forward.
"We do not agree on everything. We have differences with the IMF because some of the conditions it is imposing are not suitable for my economy or my people."
Two weeks later, on May 25, the finance ministry said the finance minister had expressed interest in launching a new IMF programme during a virtual meeting with Nigel Clarke on May 21, and that the IMF official welcomed the initiative.
According to the ministry, Amir Khosru reaffirmed the government's commitment to macroeconomic stability and structural reforms.
However, he also noted that the current IMF programme had been designed under a different economic and policy environment, and that subsequent domestic developments, political economy considerations and global uncertainty had created challenges in implementing some reform conditions.
"The government does not want to move away from reforms. Rather, it wants to implement them gradually, realistically and in line with the country's circumstances," he said.
The discussions also covered the possibility of a new IMF programme under the newly elected government, featuring a realistic three-year timeframe and a phased implementation of priority reforms.
According to the finance ministry, Nigel Clarke welcomed Bangladesh's reform efforts and its interest in pursuing a new programme.
