Shillong: The International Monetary Fund has frozen funding for Bangladesh. The lender demands immediate action on nearly a dozen stalled financial and climate policies before it releases any more cash. Dhaka currently seeks the remaining tranches of a $4.7 billion credit line plus an extra $2 billion in budget support.
The IMF wants Dhaka to dump fuel and electricity subsidies. It also insists on moving to a market-based foreign exchange rate. Officials must finish banking sector overhauls and grant the National Board of Revenue single-click access to taxpayer data. A delegation from the Fiscal Affairs Department recently hit Dhaka to audit tax policies and review previous failures.
The group evaluated institutional capabilities to handle climate change this past July. Their findings will dictate the terms of any future loan agreements. Dhaka recently launched its Public Financial Management Reform Strategy 2025-2030, which includes gender-responsive budgeting and climate-smart financial targets for the first time.
Government records show Tk 42,206.89 crore earmarked for climate projects across 25 ministries. This sum hits 10.09 percent of the total FY26 budget. Finance Secretary Dr. Md. Khairuzzaman Mozumder remains optimistic despite the tough terms. "We hope that the IMF will consider different difficulties of Bangladesh to meet cent percent of the loan conditions. Despite some challenges, we are expecting the loans will be released in favour of Bangladesh," he stated.
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