Bangladesh is seeking $14.5 billion in fresh loans from the International Monetary Fund (IMF) and World Bank while pressing for financing conditions tailored to its economic recovery programme rather than standard reform prescriptions.
The government has requested a new $4.5 billion IMF programme and an additional $10 billion from the World Bank over three years. Both proposals remain under negotiation.
The requests dominated Bangladesh's discussions with multilateral lenders during the IMF-World Bank annual meetings in Bangkok, which concluded on Sunday.
Finance Minister Amir Khosru Mahmud Chowdhury said talks with the IMF had made progress, with technical teams expected to work through outstanding issues over the next two weeks.
Dhaka hopes to conclude an agreement by December.
The proposed IMF loan would be disbursed in installments through 2029. The loan amount, repayment terms, policy conditions and disbursement schedule have yet to be finalised.
Meanwhile, the government has asked the World Bank for $10 billion in additional financing beyond its regular development assistance.
The proposed funding would help address rising energy costs, subsidy pressures and broader development needs.
Bangladesh wants international lenders to recognise its economic circumstances when designing financing and reform programmes.
Finance and Planning Adviser Rashed Al Mahmud Titumir told Daily Waadaa that the government had presented a “country-specific reform agenda” to the IMF and other development partners.
Dr Titumir identified three factors behind the government's position: weaknesses inherited in the banking system, the economic shock from the Middle East conflict and the challenges of Bangladesh's impending graduation from least developed country status.
He said the government wanted to retain control over its reform priorities while securing international assistance.
Titumir said this government’s “reform ownership” belongs to an elected, democratic government," he said, adding that multilateral partners had agreed to support Bangladesh's priorities.
Bangladesh's proposed reforms include raising the tax-to-GDP ratio from below 7% to 10% over five years and separating revenue policymaking from tax collection.
The government also wants to expand private sector credit, revive investment and strengthen social protection.
Titumir said the administration had prepared a 600 billion taka stimulus package and was pursuing measures to restore confidence in the banking system.
Its broader five-year strategy, titled From Fragility to Prosperity, envisages economic stabilisation, recovery and accelerated growth.
The government aims to build a $1 trillion economy by 2034.
Bangladesh's request for an additional $10 billion from the World Bank comes with proposals to accelerate project implementation.
According to The Business Standard, the government has pledged to reduce the implementation period for World Bank-funded projects from seven years to five.
It also wants to cut project approval times from 18 months to eight, with a longer-term target of five months.
The commitments were discussed during a meeting between the Bangladeshi delegation and World Bank Managing Director Anna Bjerde in Bangkok.
The government is also negotiating a new Country Partnership Framework to determine the World Bank's financing priorities and development engagement with Bangladesh.
The additional $10 billion request has not been approved. Individual financing commitments will depend on subsequent negotiations, project preparation and the World Bank's approval procedures.
Bangladesh is also seeking greater access to concessional financing through the World Bank's International Development Association.
Titumir said LDC graduation would create new challenges for trade competitiveness and development financing.
The government expects negotiations over its proposed lending arrangements to continue in the coming weeks.
Bangladesh's financing push comes as the IMF and World Bank warn of mounting pressure on developing economies.
The annual meetings, held in Bangkok from October 12 to 18, brought together representatives of 191 member countries.
The IMF's International Monetary and Financial Committee warned on Saturday that expanding conflicts, disrupted trade routes and higher energy and food prices were increasing risks to global growth.
It called for greater assistance to countries facing short-term financing difficulties, particularly those with sustainable debt positions and credible reform programmes.
IMF Managing Director Kristalina Georgieva warned of persistent risks from inflation, debt, geopolitical tensions and artificial intelligence.
World Bank President Ajay Banga called for greater mobilisation of private capital to support employment and development.
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