Staff Correspondent

An International Monetary Fund (IMF) mission team led by Chris Papageorgiou expresses their profound sadness over the loss of lives and injuries during the recent public uprising in Bangladesh.

The team visited Dhaka from September 24 to 30 to discuss recent developments and the authorities' reform priorities.

At the conclusion of the mission on Monday, Papageorgiou issued a statement expressing deep sadness over the loss of lives and injuries during the recent public unrest, emphasizing solidarity with the people of Bangladesh in these challenging times. He noted that the timely establishment of an interim government has contributed to stabilizing political and security conditions, paving the way for a gradual return to normalcy in the economy.

“Nonetheless, economic activity has slowed markedly, while inflation remains at double-digit levels, owing to the recent turbulence and major floods. The deterioration in the balance of payments has put additional pressure on foreign exchange reserves.

Concurrently, tax revenue collection has declined, while spending pressures have increased, and domestic payment arrears have accumulated. Financial sector vulnerabilities have become more pronounced. In this context, the authorities and IMF staff have held open and productive discussions on the policies and reforms needed to address these emerging challenges. We support the authorities' efforts to initiate policy adjustments, including continued monetary tightening and rationalizing non-priority capital spending, in response to these challenging circumstances.”

The IMF remains a steadfast partner, fully committed to supporting Bangladesh and its people. Within the framework of the ongoing IMF-supported program, we will continue to work closely with the authorities to advance Bangladesh’s reform agenda, which aims to ensure macroeconomic stability, promote job creation, strengthen institutions, and foster strong, sustainable, and equitable growth, read the statement.

“We welcome the authorities’ renewed commitment to implementing the reforms under the IMF-supported program. Discussions on how to proceed with program reviews will continue during the upcoming 2024 IMF-World Bank Annual Meetings,” it said.

The IMF team also expressed their gratitude to the Bangladeshi authorities and other stakeholders for their hospitality and candid discussions.

The team held meetings with Finance Advisor Saleh Uddin Ahmed, Bangladesh Bank Governor Ahsan Mansur, and other senior officials.

The team also met with representatives from the private sector, think tanks, bilateral donors, and development partners.