Foreign reserves have declined to around $29 billion (2,900 crore dollars). This figure is calculated using the IMF-recommended methodology known as BPM6.

In the current global environment, many countries are seeking budget support from development partners, making Bangladesh’s move not unusual, according to Zahid Hussain, former chief economist of the World Bank.

Subsidy Pressure

According to a position paper from the Ministry of Finance, an additional subsidy of Tk 38,542 crore will be required between March and June 2026 for fuel, gas, electricity, and fertilizer. This will bring the total subsidy to Tk 97,542 crore, while the budget allocation for subsidies stands at Tk 59,000 crore.

Despite rising prices in the global market, the government has not increased domestic fuel prices in April. However, on April 9, a high-level cabinet committee—led by the finance minister—was formed to review electricity tariff adjustments.

Seeking Loans

Sources from the Economic Relations Division (ERD) said that discussions have begun with several international institutions—including the World Bank, IMF, Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB)—to secure emergency financing. Bangladesh has previously received budget support, though development partners had attached various reform conditions. While some were implemented, others were not, which may raise questions about reform progress in securing new assistance.

Institutions like the IMF generally oppose broad-based subsidies in sectors such as fuel, gas, and electricity. In response, the Finance Ministry stated in its position paper that the subsidies will be temporary and targeted. At the same time, steps will be taken to increase revenue.

Meanwhile, Bangladesh’s external debt continues to rise. As of December 2025, total foreign debt stood at $113.51 billion (11,351 crore dollars), equivalent to approximately Tk 13,96,173 crore in local currency.

Zahid Hussain noted that, given the current global situation, many countries are turning to development partners for budget support, so Bangladesh’s approach is not out of the ordinary. However, he added that development partners will likely question what policy measures the government has taken and why domestic fuel prices have not been adjusted despite increases in the international market.