A delegation from the International Monetary Fund (IMF) is scheduled to arrive in Dhaka on October 29 for a two-week mission to evaluate Bangladesh’s progress under its ongoing loan programme.
The outcome of this visit will be crucial in determining whether the IMF will release the sixth tranche of the loan, according to finance ministry sources.
The visit follows the IMF-World Bank Annual Meetings, which will be held in Washington from October 13–17. The IMF team will be led by Chris Papageorgiou, head of the Development Macroeconomics Division at the IMF’s Research Department.
During the mission, the delegation will hold discussions with key government and financial authorities, including the 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.
The focus will be on assessing the government’s compliance with structural and quantitative targets tied to the loan agreement.
In January 2023, the IMF approved a $4.7 billion Extended Credit Facility (ECF) and Extended Fund Facility (EFF) package for Bangladesh. Recently, the programme has been expanded to $5.5 billion over eight tranches (up from the original seven), with the duration extended to January 2027.
To date, Bangladesh has received five installments totaling $3.64 billion, with $1.86 billion still to be disbursed.
A key component of the upcoming review will be the country’s performance against Quantitative Performance Criteria (QPCs)—mandatory benchmarks that include maintaining adequate net international reserves (NIR), limiting non-concessional external borrowing, and achieving tax revenue targets set for the NBR.
As of the end of June 2025, Bangladesh was required to maintain a minimum NIR of $17.4 billion, but the actual figure stood at a stronger $20.73 billion, indicating progress on the external reserves front.
Additionally, the government has made satisfactory headway in clearing overdue payments for energy and fertilizer imports.
However, revenue mobilization remains a major concern. Against a target of Tk4.43 trillion, the NBR collected only Tk3.78 trillion by June—a significant shortfall that could impact the assessment.
The revised disbursement schedule has also changed the amounts per tranche. Under the original plan, the sixth and seventh tranches were each set at $530 million, but have now been reduced to $430 million. The final tranche, expected in January 2027, will be $1 billion—the largest single installment of the programme.
Pending a successful review, the IMF Executive Board is expected to consider approving the sixth tranche. Although this decision was initially slated for December, it may be deferred to January 2026 due to the year-end holidays.
The upcoming mission will play a decisive role in shaping the next phase of Bangladesh’s economic support from the IMF, at a time when the country continues to navigate fiscal pressures, external vulnerabilities, and structural reform challenges.