Finance Minister Amir Khosru Mahmud Chowdhury has signalled a cautious approach towards a new IMF credit programme, saying any future arrangement must protect public interests and economic stability as the lender begins discussions on fresh support.
"The government will not participate in any IMF programme that compromises the interests of the people," the minister told reporters at his office at the Bangladesh Secretariat in the capital.
He said the previous IMF programme, undertaken by the former "fascist" government, was entirely "contrary to the public interest".
"That programme contained numerous conditions that were unacceptable to a democratic and elected government, and that is why the present government has moved away from the previous arrangement," Mr Chowdhury said.
He said the government's priority was not merely securing funds but ensuring that national interests remained protected.
"As an elected government, our top priority is to safeguard the interests of the people of Bangladesh and the country's economy," he said.
"We are entering into a new programme that ensures the economic interests of the people. Whatever programme we adopt, the interests of the people of Bangladesh will remain fully protected," the finance minister added.
Meanwhile, an IMF delegation began a stocktaking exercise on Bangladesh's economy on Sunday to assess the macroeconomic situation and discuss a possible new credit programme.
Ivo Krznar, the IMF mission chief for Bangladesh, is leading the 11-member team, which held meetings throughout the day with Finance Secretary Dr Md Khairuzzaman Mozumder and senior officials of the Finance Division, sources said.
Finance Division officials made a presentation outlining policy priorities, the preparation process and key elements of a possible second Resilience and Sustainability Facility (RSF), while discussing potential programme parameters with the IMF team.
Sources said officials informed the delegation that several reform initiatives under the previous credit programme remained incomplete and would be prioritised under the proposed new arrangement.
The areas requiring greater attention include revenue mobilisation, reform of the National Board of Revenue (NBR), digital transformation of income tax administration, VAT rationalisation and tax expenditure reforms, financial sector reform strategy, further flexibility of the exchange rate regime and governance reforms at the central bank.
The IMF team also sought information on electricity, natural gas, fuel, fertiliser, food and other subsidies, capacity payments, financial transactions between the Ministry of Finance and Bangladesh Power Development Board, and plans for further electricity tariff adjustments, sources said.
The delegation also inquired about proposed increases in public sector wages and the additional financial requirements for implementing a new pay scale, they added.
"The IMF team has heard the Bangladesh authorities' views on the new credit programme," a senior official told The Financial Express, without providing further details.
syful-islam@outlook.com