The release of the fourth instalment of Bangladesh's $4.7 billion loan from the International Monetary Fund (IMF) is likely to be delayed until June, according to Finance Adviser Salehuddin Ahmed.
Originally, the IMF's executive board was scheduled to review the release of the $645 million instalment on February 5, but it has now been rescheduled for March 12.
Ahmed explained that the delay is due to some outstanding tasks, noting that the review of both the fourth and fifth instalments could be done together. He added that the government is not in a rush to meet all the IMF's conditions and would not comply with everything immediately, as it would be difficult to implement multiple requirements at once.
The government has requested the IMF to assess the progress of the loan conditions in June, a proposal that the IMF has agreed to. The finance adviser also mentioned that Bangladesh's macroeconomic indicators have improved, with positive figures in the current account, financial account, and expatriate remittances, which reduces the urgency.
Regarding the IMF's condition for increasing revenue collection, the government plans to expand the tax base rather than raise tax rates. The National Board of Revenue (NBR) has been instructed to boost tax collection in rural areas while keeping VAT and tax rates at reasonable levels.
