IMF agrees with proposed framework for new programme: Khosru

Speaking to reporters after a meeting with IMF Mission Chief for Bangladesh and Hong Kong, Ivo Krznar, at the Finance Ministry, the minister said the discussions focused on the foundation, sequencing and overall policy direction of a future programme rather than detailed conditions.

“The basis on which the new IMF programme will be structured has been clarified, and the IMF has agreed with the proposed framework,” the finance minister said.

He said the reforms would be implemented gradually, taking into account Bangladesh’s economic realities and maintaining continuity in the ongoing reform agenda.

“Major changes cannot be introduced overnight. The IMF also agrees that reforms should be sequenced in line with the country’s economic situation and priorities,” he said.

Both sides agreed that reforms should be carried out step by step based on national priorities instead of following a rigid timeline, he said.

Amir Khosru also said the IMF has shown respect for the responsibilities of a democratically elected political government in safeguarding public welfare while pursuing economic reforms.

“The country’s economic decisions will be taken by protecting the interests of the people,” he said.

The finance minister said the IMF delegation expressed satisfaction over the progress made during the current government’s first four months, particularly in financial sector reforms, the development of the capital market and revenue collection.

He claimed that the IMF recognised the government’s tax collection performance during the four-month period as a significant achievement and held positive discussions on proposals to further raise Bangladesh’s tax-to-GDP ratio.

On the issue of subsidies, the minister said no detailed discussions has yet taken place regarding specific conditions or policy measures.

“We have only discussed the basic framework of the new programme. Detailed issues, including subsidies, will be taken up during subsequent negotiations,” he said.

Khosru said the negotiations would continue over the coming months, with the next round of discussions expected to take place on the sidelines of the World Bank-IMF Annual Meetings in September or October.

He expressed optimism that the government’s reform-oriented performance would provide a solid foundation for finalising a new IMF programme, reports UNB.