IMF Says Bangladesh Seeks New USD 5 Billion Programme Amid Iran War Fallout

Bangladesh has requested a new IMF-supported assistance programme as the country struggles with rising fuel costs, inflation, and foreign exchange pressures worsened by the ongoing Iran war and global energy disruptions.

The International Monetary Fund (IMF) confirmed that discussions are underway with Dhaka on a revised reform agenda and future policy priorities. IMF Mission Chief for Bangladesh Ivo Krznar said the fund remains committed to supporting the country in achieving long-term macroeconomic and financial stability while sustaining inclusive growth.

According to Bangladeshi officials, the existing IMF arrangement, approved in 2023, was designed under a very different economic and political environment. Dhaka is now seeking a fresh package reportedly worth between USD 5 billion and USD 6 billion , potentially replacing the current USD 5.5 billion loan programme .

The fresh negotiations come as Bangladesh faces mounting economic stress linked to the Iran conflict, which has sharply increased global oil, LNG, fertiliser, and shipping costs. Bangladesh, heavily dependent on imported fuel from the Middle East, has been seeking over USD 2 billion in emergency external financing to secure energy imports and stabilise reserves.

The IMF has reportedly delayed releasing a pending USD 1.3 billion tranche under the current arrangement because of slow progress in banking and revenue-sector reforms. Bangladesh has argued that several IMF conditions, including subsidy cuts and tax increases, are difficult to implement amid economic strain and political transition following the 2024 ouster of former prime minister Sheikh Hasina .

Prime Minister Tarique Rehman’s government has also unveiled a USD 4.9 billion stimulus package to support industries and jobs, while the Asian Development Bank recently pledged USD 5 billion in assistance over five years.