DHAKA — Bangladesh still faces three major financial challenges—weak revenue, a risky financial sector and high inflation—despite progress on macroeconomic stability and reforms, the International Monetary Fund said in a statement Thursday.
The assessment was released by an IMF delegation visiting Dhaka after the fifth review under the ongoing $4.7 billion loan program. The delegation, led by Chris Papageorgiou, met with various government agencies and economic policymakers from Oct. 29 to Nov. 13.
The IMF said weakness in Bangladesh’s revenue structure was straining the economy. The capital shortfall in the banking sector and high inflation are also major obstacles to stable growth, it said. Bold and effective policies are urgently needed to maintain sustainable financial balance and achieve inclusive growth, the IMF said. Delay or weakness in policymaking could put the economy at greater risk.
The statement said coordinated steps must be taken to reform revenue administration and address structural weaknesses in the financial sector. Building a simple, transparent and effective tax system would increase revenue and strengthen macroeconomic stability, it said.
The IMF assessment also said Bangladesh’s gross domestic product growth in fiscal 2024-25 fell to 3.7 percent, the result of last year’s political instability and disruptions to production. After months of effort, inflation has come down from double digits to 8 percent, it said.
The IMF said it expected growth to average about 5 percent in fiscal 2025-26 and 2026-27 if tax reforms and financial sector restructuring are implemented effectively, although it could fall to 5.5 percent in 2026-27.
To boost medium-term growth momentum, governance must be strengthened, youth unemployment reduced and economic diversification emphasized, the IMF said. Effective implementation of these reforms would make Bangladesh’s development more inclusive and sustainable, the agency said.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report