World Bank, IMF Signal Stronger Engagement with Bangladesh After Formation of New Government

By Tanvir Rusmat, Dhaka, December 04, 2025

Following the formation of Bangladesh’s new government, both the World Bank and the International Monetary Fund (IMF) have indicated a renewed willingness to deepen financial and policy cooperation, particularly as the country navigates economic pressures stemming from global inflation, foreign exchange volatility, and structural reform demands.

Officials in Dhaka confirm that early communications from the two Bretton Woods institutions suggest an expanded framework of collaboration, focusing on fiscal stabilization, energy-sector reforms, and long-term development financing. According to Finance Ministry sources, the World Bank has expressed interest in accelerating several ongoing project pipelines in transport, climate resilience, digital governance, and social protection—areas where Bangladesh has been one of its largest South Asian partners.

The IMF, meanwhile, has reiterated the importance of policy continuity under the new administration. With the existing $4.7 billion IMF loan program entering a crucial implementation phase, the Fund is expected to push for strengthened monetary policy, enhanced reserve buffers, and faster reforms in banking governance. An IMF team is likely to visit Dhaka soon for technical consultations as Bangladesh prepares for its next tranche review.

Economists note that both institutions view political stability as a positive signal for continued reform momentum. “Bangladesh remains a key growth economy in South Asia, and international lenders want to see its reform commitments sustained. A stable political environment increases confidence,” said Dr. Ahmed Kamal, a Dhaka-based policy analyst.

However, challenges remain. The country still faces pressure on the balance of payments, rising domestic prices, and reduced export competitiveness. The IMF has emphasized that exchange-rate flexibility and tighter monetary discipline will be essential, while the World Bank is encouraging transparency and accountability in megaproject implementation to ensure effective use of development funds.

Despite these hurdles, early signs indicate that Bangladesh’s partnership with the World Bank and IMF is set to strengthen rather than stall. Government officials say they expect “constructive negotiations” in the coming months, particularly as the country seeks new financing windows to support economic recovery, green transition, and job creation.

With global headwinds still affecting developing economies, Bangladesh’s alignment with major international lenders could play a decisive role in shaping its medium-term economic trajectory.