Finance Adviser Dr Salehuddin Ahmed declared that Bangladesh is no longer dependent on the International Monetary Fund (IMF) or the World Bank, emphasising a shift away from loans tied to stringent conditions.
Speaking to journalists after the Advisory Council Committee on Government Procurement meeting at the Cabinet Division Conference Room on Tuesday, April 29, he stated, “We do not want to take loans by complying with all the IMF’s conditions. ”Bangladesh no longer dependent on IMF, WB, says Salehuddin.
Salehuddin highlighted the risks of IMF loans, noting, “Budget support money must be repaid within five years, not 20. If the exchange rate depreciates, a $3 billion repayment could balloon to $5 billion, forcing us to buy dollars at Tk 160-180.” He firmly rejected loans tied to stringent conditions, saying, “Even if the IMF offers money, we won’t take it. We don’t want the debt burden.”
Addressing concerns about the IMF’s nine-month funding hiatus, Salehuddin affirmed that Bangladesh would take strong action independently. “We will act, not them. In Indonesia and Malaysia, failure to repay led to job losses. If we don’t comply, you’ll see the job losses here,” he warned, citing former Malaysian Prime Minister Dr Mahathir Mohamad’s tough measures.
Despite rejecting IMF budget support, Salehuddin noted that macroeconomic stability has been achieved without their funds since the current government took power. “We’ve stabilized the foreign exchange market and reserves without IMF money. They now understand we won’t follow their conditions,” he said, mentioning minor unresolved issues like separating the National Board of Revenue (NBR), simplifying the forex market, and contributing to a stabilization fund—conditions Bangladesh has resisted or negotiated.
Salehuddin also outlined alternative project financing, including $1 million requested from the Asian Infrastructure Investment Bank (AIIB), and support from the New Development Bank (NDB) and Islamic Development Bank. “I see no issues with project support. The World Bank and ADB are in the pipeline,” he added. Additionally, a $100 million agreement was signed with the OPEC Fund for private sector investment, and the International Finance Corporation (IFC) committed $500 million.
Reflecting on recent international engagements, Salehuddin described discussions with the World Bank, AIIB, IOM, IMF, IFC, OPEC Fund, a US business delegation, and US departments including Energy, State, Labour, Agriculture, and Treasury. “They came well-prepared and engaged sincerely,” he said, noting a global shift where nations prioritize US leadership over traditional lenders like the World Bank and IMF.