IMF Loan Update - What It Means for the Economy

• Bangladesh’s GDP projected to surpass $500B in FY26, driven by economic recovery Source

• RMG orders surge amid strong global demand, expected 10% growth in 2025 Source

• Bangladesh’s apparel exports to Europe & US rise significantly, with a 13.9% YoY growth in the EU and 16.45% in the US Source

• IMF defers release of 4th loan tranche to June, delaying much-needed funding Source

• Mobile banking transactions hit record $13.5B in December 2024, reflecting a 28.4% annual increase Source

• Japan’s top investors pledge more investment in Bangladesh, reinforcing strong bilateral trade Source

• Adani Power to fully restore electricity supply to Bangladesh, though discounts were denied Source

• Government to allocate $49.2M for Beximco workers’ unpaid wages, ensuring settlement Source

• National Board of Revenue (NBR) to revise baggage rules, aiming to curb misuse of gold imports Source

Economy & Banking

• Bangladesh’s GDP May Cross $500B in FY26: The finance ministry projects that Bangladesh’s GDP will exceed $500 billion in FY26, driven by economic recovery. The estimate for FY25 has been revised down to $470 billion Source

• IMF Defers $4.7B Loan Tranche to June: The IMF has postponed the release of the fourth tranche of Bangladesh’s $4.7 billion loan, citing unmet conditions. The fourth and fifth tranches might be disbursed together in June Source

• Development Spending Hits 15-Year Low: Implementation of Bangladesh’s Annual Development Program (ADP) stood at only 21.52% in the first seven months of FY25, the lowest in 15 years, due to political unrest and project delays Source

• Mobile Banking Transactions Reach Record $13.5B: Transactions through mobile banking platforms hit a record $13.5 billion in December 2024, marking a 28.42% increase from the previous year Source

• Banks Begin Lowering Interest Rates: With a decline in government securities yields, banks have started reducing both lending and deposit rates, focusing more on private-sector lending Source

• Agent Banking Loans Grow 56% in Q4 2024: Lending through agent banking increased by 56% YoY to $1.96 billion in Q4 2024, while deposits grew by 15.4% Source

Trade & Commerce

• Apparel Exports to Europe & US Post Strong Growth: Bangladesh’s apparel exports to the EU grew 13.91% YoY to $11.81 billion, while exports to the US surged 16.45% to $4.47 billion in the first seven months of FY25 Source

• Japan’s Top Investors Pledge Increased Investment: Leading Japanese investors, including NEXI, Mitsui, and Marubeni, have assured increased investment in Bangladesh, focusing on infrastructure and manufacturing Source

• NBR Plans to Tweak Gold Import Rules: The National Board of Revenue (NBR) is considering amending baggage rules and imposing additional taxes on jewelers to prevent gold import misuse Source

• Bangladesh Faces Deepening Job Crisis: The private sector, which employs 95% of Bangladesh’s workforce, is struggling due to stalled credit growth and declining capital machinery imports, leading to rising unemployment among educated youth Source

• Funding Shortfall Threatens Renewable Energy Goals: Bangladesh’s goal of generating 40% of its energy from renewables by 2040 is at risk, with only 3.6% of required funds allocated in 2023 Source

• Government to Pay $49.2M in Beximco Worker Dues: The government will allocate $49.2 million to settle overdue payments for laid-off workers from Beximco Group’s textile and garment units Source

International

• US Tariffs on Autos Likely Next: The US is set to impose new tariffs on automobile imports starting April 2, continuing its aggressive trade policies Source

• Japan Releases Emergency Rice Stockpile Amid Inflation: The Japanese government will release 20% of its emergency rice reserves as prices have nearly doubled due to supply chain issues and climate concerns Source

• China’s Bank Lending Hits Record High: Chinese banks issued a record $706.4 billion in new loans in January to stabilize the economy, signaling more stimulus measures ahead Source