Bangladesh’s economy is considered stable and on the right track, according to Salehuddin Ahmed, adviser to the Ministry of Finance, after discussions with a visiting IMF delegation. However, the International Monetary Fund (IMF) has raised several concerns, including the need to increase foreign currency reserves, stabilize the exchange rate, and reduce the budget deficit. Additionally, the IMF is worried about the low tax-to-GDP ratio and the high number of zero tax returns in the country.

Following an unexpected tax hike by the National Board of Revenue (NBR) in January, the IMF is urging Bangladesh to raise an additional Tk57,000 crore next fiscal year by cutting exemptions and further increasing taxes. The IMF has indicated that without these measures, the release of the fourth loan installment, delayed since March, as well as the upcoming fifth tranche, remains uncertain.

The IMF has also expressed concerns about non-performing loan recovery and the implementation of a unified exchange rate. In response, Salehuddin Ahmed mentioned that Bangladesh is already taking steps to improve revenue collection and allow the market to determine the exchange rate. He emphasized that it is now time for the IMF to demonstrate their commitment.

Further discussions between the IMF and institutions like the NBR and Bangladesh Bank will continue. Salehuddin also noted that he will attend the IMF Spring Meetings on April 19 to further engage on these matters, with hopes of the next loan installment being released in June.