Bangladesh will withdraw from the $4.7 billion loan program if the International Monetary Fund (IMF) imposes additional conditions for the release of the remaining tranches, warned Anisuzzaman Chowdhury, special assistant to the chief adviser.
He made the remarks on Saturday while speaking at a budget seminar held at the Bangladesh Agricultural Research Council in Farmgate, Dhaka.
“Bangladesh will pull out if the IMF imposes further conditions for disbursing the loan. Complying with all of the organization’s conditions could weaken the economy,” said Anisuzzaman.
At the seminar—held ahead of Bangladesh’s final graduation from LDC status next year—agricultural economists urged the government to increase the agriculture budget with clearly defined targets.
They also recommended reducing VAT on the import of raw materials used in poultry feed production, and called for easier access to loans and incentives for farmers.
Faced with dwindling foreign exchange reserves, Bangladesh signed a $4.7 billion loan agreement with the IMF on January 30, 2023.
The first tranche, amounting to $476.27 million, was disbursed three days later. This was followed by a second instalment of $682 million on December 16 of the same year. The third instalment, worth $1.15 billion, was received on June 24 last year.
The IMF is scheduled to release the loan in six instalments by 2026. Although Bangladesh has received three instalments so far, uncertainty now surrounds the disbursement of the fourth and fifth.