Bangladesh is expected to receive approximately $3.5 billion in external financial support by June 2025, including $1.3 billion from the International Monetary Fund (IMF) and around $2 billion from various international development partners. The anticipated disbursement comes as part of the country's ongoing engagement with multilateral and bilateral lenders to bolster its budget and foreign exchange reserves.

According to a statement issued by the Ministry of Finance on Wednesday, May 14, the IMF is preparing to release the fourth and fifth tranches of its approved loan package simultaneously, following the successful completion of the fourth review of Bangladesh's reform commitments. These tranches, totaling $1.3 billion, are expected to be disbursed by the end of June.

The ministry noted that the fourth review process included in-depth assessments of key reform measures related to revenue administration and the foreign exchange rate regime. A significant round of discussions took place in April during an IMF mission’s visit to Dhaka. This was followed by continued negotiations during the Spring Meetings of the IMF and World Bank held later that month in Washington, D.C.

As part of the review process, both parties agreed on a series of macroeconomic and structural reforms aimed at ensuring fiscal stability and currency market efficiency. With the staff-level agreement for the fourth review finalized, the disbursement of the two tranches now awaits the formal approval of the IMF Executive Board, which is expected to convene before the end of the fiscal year.

In addition to the IMF funds, Bangladesh is also expecting budgetary assistance from several other development partners. These include the World Bank, the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the government of Japan, and the OPEC Fund for International Development. Collectively, these partners are anticipated to contribute around $2 billion in financial support by the end of June.

The Ministry of Finance emphasized that the combined inflow of funds will significantly enhance the country’s foreign exchange reserves and support the government's efforts to maintain macroeconomic stability. The added reserve buffer is projected to help manage volatility in the foreign exchange market and ensure smooth functioning of trade and investment flows.

In 2023, the IMF Executive Board approved a $4.7 billion loan program for Bangladesh under a multi-year arrangement scheduled to be delivered in seven installments through 2026. The country has already received three tranches totaling $2.31 billion, with the most recent disbursement made in June 2024. The fourth tranche was initially scheduled for release in December 2024 but faced delays due to unmet reform conditions and required further negotiations.

Despite the delay, the Ministry of Finance stated that the government has taken meaningful steps to meet IMF benchmarks, including implementing fiscal reforms and improving transparency in monetary policy. These steps have paved the way for the dual tranche release now expected in June.

Officials involved in the negotiation process stated that the budgetary support from other international partners will also complement the IMF funding by easing pressure on the balance of payments and creating room for increased development spending in priority sectors.

The finance ministry underscored that Bangladesh remains committed to fulfilling its reform agenda under the IMF program and engaging constructively with development partners to secure needed financing. The expected funding inflow is viewed as a key element in stabilizing the economy amid external shocks and persistent inflationary pressures.

Government sources indicate that once the funds are received, a portion will be used to shore up foreign reserves, while the rest will be allocated to budgetary spending, including public investment and subsidies. As of now, Bangladesh continues to navigate challenges in revenue mobilization and trade balance, with external support playing a critical role in policy continuity.

The anticipated disbursement marks a significant milestone in Bangladesh’s ongoing efforts to strengthen its financial position and meet the terms of its international loan agreements. The government is hopeful that the successful release of these funds will boost investor confidence and pave the way for greater economic resilience in the coming fiscal year.