Among four South Asian nations, Sri Lanka performed the best in containing high inflation.

The International Monetary Fund (IMF) has revised down growth forecast for Bangladesh’s economy to 6 percent for the fiscal year 2023-24, lower from its previous projection of 6.5 percent.

Bangladesh has failed to meet two of the six quantitative targets set for the first half of 2023 by the International Monetary Fund for the $4.7 billion loan, with one of them being a mandatory condition.

Pakistan secured a badly-needed $3 billion short-term financial package from the International Monetary Fund on Friday, giving the South Asian economy a much-awaited respite as it teeters on the brink of default.

The upcoming budget poses significant challenges – arguably the most challenging in recent times – for economic policymaking in Bangladesh.

The budget of Bangladesh has become an orphan and the International Monetary Fund (IMF) is now the foster father of it, said Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue (CPD).

Shares its assessment after conducting a staff visit to Dhaka starting April 25

A team of staff of the IMF is now visiting Bangladesh

The formula will be followed from July this year

Financial pressures are adding to strains caused by high interest rates, volatile oil prices and years of double-digit inflation.

The IMF, which has predicted global growth of 2.9 per cent this year, is slated to release new forecasts next month.

A set of parallel initiatives need to be undertaken targeting the structural weaknesses of the gas sector and power sector development to ensure energy transition.

Three issues would be dictating the upcoming fiscal year’s budget, the last of the Awami League government’s present five-year term: the International Monetary Fund’s conditions, the persistently high inflation and next year’s national election.

Bangladesh’s preparation for LDC graduation would start in earnest with the International Monetary Fund’s 42-month loan programme, where one of the objectives is to overhaul the monetary and exchange rate policies to meet the needs of an open economy.

The International Monetary Fund would be watching the Bangladesh economy like a hawk, stipulating an extensive list of data reporting regularly as part of the conditions agreed upon for the $4.7 billion loan programme.

The key to the ACC’s effectiveness in delivering its mandate is independence, especially when setting the example that, in handling allegations of corruption, it is guided by equality before law, and not by the status or identity of the individual depending on their political, governmental, or other connections.

Kristalina Georgieva describes IMF's outlook for 2023 as "less bad, not good"

Bangladesh has averted a potential major crisis by reaching out to the International Monetary Fund (IMF) in a timely manner, said Kaushik Basu, a former chief economist of the World Bank.

Bangladesh has a low risk of external and overall debt distress despite higher external borrowing in recent terms, said the International Monetary Fund.

The International Monetary Fund has identified the problems in the banking system, including the high volume of defaulted loans, as one of the three domestic risks that derail the economy in the short- to medium-term.