DHAKA, June 3 (Reuters) - Government sources indicated on Wednesday that Bangladesh has formally asked the International Monetary Fund for a fresh loan facility, marking the end of its existing $5.5 billion agreement. The nation is poised to commence discussions with the IMF regarding a new framework that will define the structure and prerequisites of future financial support.

Officials emphasized that the current program was established under vastly different economic circumstances. They noted that shifting political landscapes, domestic challenges, and global instability have rendered certain reform mandates more difficult to execute.

"We are not stepping back from reforms. What we want is a realistic and phased reform agenda that reflects Bangladesh's present economic conditions," Rashed Al Mahmud Titumir, the prime minister’s adviser on finance and planning, told Reuters. He added that the administration would meticulously examine the IMF’s proposed policy framework to guarantee it aligns with both national objectives and the current economic reality.

The IMF confirmed that dialogues are in progress concerning reform priorities and the general trajectory of economic policy.

"The Bangladeshi authorities have requested a new IMF financial arrangement to support their economic reform programme," IMF Mission Chief Ivo Krznar stated in a Wednesday release. He noted that IMF personnel are collaborating with Bangladeshi officials on policy goals and reform design, reaffirming the Fund’s dedication to fostering macroeconomic stability, resilience, and inclusive growth.

An IMF delegation is anticipated to visit Bangladesh in the coming weeks to initiate detailed negotiations on a potential new arrangement, covering aspects such as the loan’s magnitude and specific reform requirements.

Bangladesh launched its current IMF program in 2023 under the administration of then-Prime Minister Sheikh Hasina, amid a critical shortage of foreign exchange. The package, which was subsequently increased to $5.5 billion, mandated reforms in revenue collection, the rationalization of energy subsidies, and greater flexibility in the exchange rate.

However, officials state that implementing these measures has grown increasingly challenging due to sustained inflation, sluggish economic expansion, and external shocks, such as fluctuations in global energy prices driven by the crisis in the Middle East. In an effort to alleviate subsidy burdens, Bangladesh has hiked fuel prices twice within a six-week period and raised electricity tariffs. While some analysts view these steps as consistent with IMF advice, they have also heightened concerns regarding the cost of living.

These negotiations unfold against the backdrop of a political shift following the removal of Hasina in August 2024. The new government aims to adjust economic policies while preserving the backing of international financial institutions.

(Reporting by Ruma Paul; Editing by Hugh Lawson)

Source: Yahoo News Generated at: 2026-06-03 14:32:37 UTC