Finance Adviser Dr Salehuddin Ahmed has assured that the government will present a manageable and realistic budget even if it does not receive financial support from the Asian Development Bank (ADB) or the International Monetary Fund (IMF).
He made these remarks while addressing reporters after a meeting with ADB Vice President for South, Central, and West Asia, Yingming Yang, at the Ministry of Finance on Sunday (May 4).
Salehuddin highlighted that the ADB Vice President visited Bangladesh to assess the country’s economic condition.
He informed the ADB delegation that the economy is now performing "better" than before, with significant improvements in the microeconomic landscape.
The government has implemented numerous reforms in the banking sector, and efforts are ongoing to address trade-related challenges—a key focus area moving forward.
The adviser noted that the ADB praised Bangladesh’s recent investment summit and reaffirmed its commitment to supporting infrastructure development in the country.
Several projects are already in the pipeline, and discussions are underway regarding further collaboration.
When asked about budget support, Salehuddin said that Bangladesh would proceed cautiously without rushing into agreements that impose unreasonable conditions. "We have told them [ADB] that discussions with the IMF are ongoing. They [IMF] want greater involvement of the private sector. In this regard, we have institutions like IDC, BIF, and IFC, and we are engaging with them," he explained.
He also revealed that the ADB has proposed organising a workshop in Dhaka to promote private-sector investments, signalling continued confidence in Bangladesh’s economic trajectory.
Responding to queries about whether delays in securing an IMF loan could impact ADB’s budget support, Salehuddin clarified that the IMF is currently reviewing Bangladesh’s microeconomic indicators.
"They [IMF] have sought reassurance through a letter confirming our progress in stabilising the micro economy. We assured them that such a letter will be provided – but gradually, not hastily. We are not in a rush to accept stringent conditions from the IMF," he emphasised.
The Finance Adviser expressed optimism, stating that Bangladesh’s economy is performing well even without IMF funding. "We have not received budget support from the IMF so far, yet we are managing effectively. Our economy is resilient and better positioned compared to many other countries," he added.
Salehuddin shared that the ADB has acknowledged Bangladesh’s economic achievements and expressed satisfaction with the country’s stability.
"They know we are preparing for LDC graduation and appreciate our efforts. ADB is committed to supporting our development agenda, including reforms in the banking sector and the National Board of Revenue (NBR)," he said.
While project support remains crucial, Salehuddin stressed that Bangladesh requires budget support more urgently. He confirmed that the ADB’s soft loan window is gradually opening up, but funds from mechanisms like the Ordinary Capital Fund (OCF) remain limited.
The Finance Adviser iterated that Bangladesh is taking proactive steps to enhance domestic resource mobilisation. "We are increasing taxes and broadening the tax base to ensure budgetary sustainability. If the IMF imposes unreasonable conditions, we will carefully evaluate them. Our priority is to reduce unnecessary expenditures and improve efficiency," he explained.
"Even if we do not receive support from the IMF or ADB, we will present a realistic and balanced budget. We are determined to manage our internal affairs effectively and ensure fiscal discipline."