DHAKA, July 16, (V7N )– The International Monetary Fund (IMF) has acknowledged Bangladesh's ongoing economic reform initiatives and reaffirmed its commitment to continued engagement with the country following discussions on a possible new Fund-supported economic reform programme.

An IMF staff team, led by Ivo Krznar, visited Dhaka from July 12 to 16 at the request of the Bangladesh government to review recent economic and financial developments and discuss the authorities' reform priorities, according to a press release.

In an end-of-mission statement issued today, the IMF described its discussions with the Bangladeshi authorities as constructive and said the visit provided an opportunity to better understand the government's policy plans, economic reform agenda, and capacity development needs. The Fund said discussions on the possible parameters of a new arrangement, including its size and reform commitments, would continue in the coming months.

The IMF acknowledged that Bangladesh is navigating a challenging global environment, with the war in the Middle East contributing to higher import and subsidy costs and renewed inflationary pressures. Despite these external shocks, it noted that the country continues to benefit from strong remittance growth.

The Fund reiterated that strengthening revenue mobilization, rationalizing subsidies, and maintaining prudent fiscal and monetary policies would help create greater fiscal space, reduce inflation, and rebuild foreign exchange reserves. It also highlighted the importance of continued implementation of the crawling peg exchange rate regime introduced in 2025 to enhance exchange rate flexibility and safeguard external stability.

The IMF emphasized that a credible and comprehensive banking sector reform strategy would strengthen macro-financial stability, improve investor confidence, and support sustainable economic growth over the medium term.

The Fund expressed appreciation to the Bangladeshi authorities and other stakeholders for their warm hospitality and constructive engagement during the mission, saying it looked forward to continuing its close cooperation with Bangladesh in support of the country's reform agenda.

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