Rejaul Karim Byron

The overhaul plan will start with at least five banks

If macroeconomic stabilisation has been the interim government's main success, revenue collection is its most glaring failure

Government tightens control over foreign loans with new preconditions

The Bangladesh Bank (BB) has formed a $500 million fund to contain erratic movements in the foreign exchange market, as the country moves towards a more flexible exchange rate regime in line with International Monetary Fund (IMF) conditions.

The government is drawing up a three-year roadmap to gradually cut subsidies in the power and gas sectors, aiming to ease the growing fiscal pressure.

The government yesterday decided to import 4 lakh tonnes of rice in its efforts to curb the spike in prices of the staple and build adequate stocks in advance so that it can intervene in the market in case of volatility originating from crop losses due to natural disasters like floods in the coming months.

The warning came just days before the Trump administration imposed a sweeping 35 percent US tariff on all Bangladeshi exports

The interim government yesterday imposed several restrictions on allocated budget expenditures, including foreign tours and vehicle purchase, in a turn towards austerity amid low revenue collection.

Bangladesh has committed to a sweeping overhaul of its troubled financial sector, outlining a detailed three-year roadmap as part of its latest agreement with the International Monetary Fund.

The Asian Development Bank plans to provide $1 billion in budget support to advance Bangladesh’s banking sector reforms, contingent on 25 conditions including the creation of a financial stability fund for banks facing capital shortfalls.

The government has pledged a series of sweeping reforms to meet International Monetary Fund conditions for the next instalment of its $5.5 billion loan, including a public survey to measure corruption in tax administration and a phased reduction of subsidies on electricity, fertiliser, remittances and exports.

Bangladesh must clear dues, hit steep revenue, reserve targets for next tranche

Bangladesh plans to launch a Tk 316 crore reform programme aimed at significantly speeding up project planning, approval, and implementation through the use of artificial intelligence for the first time.

The government plans to scale back its dependence on foreign loans as it seeks to mitigate threats to external debt sustainability.

Jumped to 589.5m francs in 2024 from 17.7m the previous year

For the first time, the World Bank, which traditionally provides development project loans and budgetary support, has extended its assistance through a guarantee facility to support Bangladesh in purchasing liquefied natural gas (LNG), aiming to ease pressure on the country’s foreign exchange reserves.

The loan utilisation period for the Rooppur Nuclear Power Plant is set to be extended by three years, as about $3.38 billion of the Russian credit remains unspent after the original deadline expired in December 2024.

Bangladesh's total debt reached Tk 1,944,171 crore by December 2024, increasing debt servicing pressure

The proposal to release the third and fourth tranches of the International Monetary Fund’s $4.7 billion loan is set to be presented to the multilateral lender’s board on June 23 after the government fulfilled all prior conditions.

The finance ministry has identified seven major challenges including tight monetary and fiscal policies, taken to tame elevated inflation levels for more than three years, in next fiscal year that may increase unemployment.