IMF urges Bangladesh to continue revenue sector reforms

Krishna Srinivasan, Director of the Asia and Pacific Department of the International Monetary Fund (IMF), has urged Bangladesh to continue reforms in key areas—particularly the revenue sector, where increasing revenue is a crucial part of the process.

He identified the financial sector as another important area. “These are the main areas we are focusing on as part of the upcoming review,” he said.

Speaking at a press conference on Thursday (October 16) during the IMF’s Annual Meetings in Washington, DC, Srinivasan explained the rationale behind the IMF’s downward revision of Bangladesh’s growth forecast for this year to 4.9 percent. He cited three main reasons: a somewhat tight policy mix; customs policies and associated uncertainties; and, beyond customs-related issues, two other factors—upcoming national elections, which inevitably impact economic confidence, and significant vulnerabilities in the financial sector affecting overall economic activity, including credit flows.

On inflation, Srinivasan said, “We expect it to reach 8.5 percent by the end of the 2025-26 fiscal year, mainly due to supply-side shocks earlier this year.”

Regarding debt, he noted that an IMF team will soon visit Bangladesh to conduct the next programme review. He reiterated that the country must continue reforms in key areas—particularly the revenue sector, where increasing revenue is critical—and in the financial sector. “These two areas will be the main focus of the upcoming review,” he added.