Bangladesh has officially asked the International Monetary Fund (IMF) for a new financial program to support its ongoing economic reform efforts, according to a statement released by the IMF on Wednesday.

“IMF staff are engaging with the authorities on their reform agenda and policy priorities as part of the Fund’s consideration of possible next steps”, IMF Mission Chief for Bangladesh, Ivo Krznar, said.

However, the IMF did not disclose the potential size of the new arrangement.

Bangladesh is already receiving about $5.5 billion under three IMF-supported programs—the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF). This amount was expanded by the interim government from an earlier $4.7 billion package approved in January 2023 during the Awami League government.

Bangladesh was due to get the fifth and sixth tranches of the loan, amounting to $1.3 billion by this year.

The IMF confirmed that preparations are underway for a staff visit to Bangladesh. During the visit, Fund officials will assess recent economic developments, engage with policymakers on reform priorities, and evaluate the country's economic outlook and reform challenges.

The Fund emphasized the importance of continued and strengthened reforms, noting challenges such as a weak banking sector and low tax revenue collection of the country.

“Any new arrangement would need to be based on Bangladesh’s balance-of-payments needs and strong policy commitments anchored by a credible reform agenda”, the statement said.