(News Credit en.prothomalo.com) Before the release of the sixth instalment under the ongoing loan programme, a delegation from the International Monetary Fund (IMF) is scheduled to visit Dhaka once again.
The annual meetings of the IMF and the World Bank will take place in Washington, D.C., from 13 to 17 October. Following these meetings, the IMF delegation will arrive in Dhaka on 29 October and remain in the country for two weeks.
The team, led by Chris Papageorgiou, Head of the Development Macroeconomics Division of the IMF’s Research Department, will review progress on the conditions attached to the first five instalments of the loan.
For this purpose, the delegation will hold meetings with relevant government bodies, including Bangladesh Bank, the Finance Division, the Financial Institutions Division, the National Board of Revenue (NBR), the Power Division and the Energy and Mineral Resources Division.
Following Bangladesh’s request, the IMF approved a loan package of USD 4.7 billion (470 crore) on 30 January 2023. The country subsequently received USD 476.3 million (47 crore 63 lakh) in February 2023 (first instalment), USD 681 million (68 crore 10 lakh) in December 2023 (second instalment), USD 1.15 billion (115 crore) in June 2024 (third instalment), and USD 1.33 billion (133 crore) in June 2025 (fourth and fifth instalment combined).
Originally, the IMF had agreed to disburse USD 4.7 billion (470 crore) in seven instalments over three and a half years. Bangladesh has so far received USD 3.64 billion (364 crore), leaving USD 1.06 billion (106 crore) outstanding.
In June 2025, the IMF’s Executive Board extended the programme duration by six months and approved an additional USD 800 million (80 crore), bringing the total facility to USD 5.5 billion (550 crore) across eight instalments. The revised programme is now set to conclude in January 2027, with USD 1.86 billion (186 crore) yet to be disbursed.
New conditions and QPC fulfilment
The upcoming IMF mission will focus primarily on the fulfilment of the Quantitative Performance Criteria (QPCs), which are binding requirements under IMF arrangements. Some new QPCs were introduced in May, including limits on external borrowing, settlement of outstanding payments for energy and fertiliser imports, and meeting NBR’s revenue collection targets.
Maintaining adequate foreign exchange reserves is also among these conditions. Failure to meet these benchmarks may delay tranche approval, although the IMF Executive Board can grant full or partial waivers in certain cases.
Under the current fiscal year’s conditions, Bangladesh cannot borrow more than USD 8.44 billion (844 crore) from external sources. The IMF will review the country’s foreign borrowing status every three months.
According to IMF stipulations, Bangladesh’s Net International Reserves (NIR) were required to stand at USD 17.4 billion (1740 crore) by the end of June, against which the actual reserves were USD 20.73 billion (2073 crore).
The targets for clearing arrears in energy and fertiliser imports were also met satisfactorily. However, revenue collection remains a concern. The NBR’s revenue target for June was set at BDT 4.43 trillion (443 crore), while actual collection amounted to BDT 3.78 trillion (378 crore).
Former Lead Economist of the World Bank’s Dhaka Office, Zahid Hussain, told Prothom Alo that the NBR had failed to meet its revenue targets on three previous occasions. If the same happens again, Bangladesh may have to seek a waiver — though whether such a waiver will be granted remains uncertain.
He also noted that the exchange rate management approach has changed, as rates are no longer predetermined, and that the existing loan rescheduling policy remains largely unchanged — both issues the IMF may raise during discussions.
Changes in instalment structure and amounts
Sources from Bangladesh Bank and the Finance Division have indicated that, under the previous arrangement, Bangladesh was expected to receive USD 530 million (53 crore) each in the sixth and seventh instalments.
The sixth instalment was scheduled for disbursement in December this year. However, due to the extended Christmas holidays in Washington, D.C., the IMF Executive Board meeting is unlikely to take place in December and may instead be deferred to January next year.
In the meantime, the instalment amounts have been revised. Bangladesh will now receive USD 430 million (43 crore) each in the sixth and seventh instalments, while the final instalment, amounting to USD 1 billion (100 crore), is scheduled for release in January 2027.
When contacted, Bangladesh Bank Governor Ahsan H. Mansur told Prothom Alo yesterday, Saturday that detailed discussions will be held with the visiting IMF delegation later this month.
He added that, apart from the revenue collection target, fulfilling the remaining conditions should not pose any significant challenges.
In response to a question about whether Bangladesh would still receive the next instalment if revenue targets were not met, the Governor stated, “The instalment itself is not of paramount importance.
What matters most is implementing the ongoing reforms in the banking and revenue sectors — their effective execution must take priority.”