IMF Applauds Bangladesh's Interim Government Efforts Amid Economic Challenges

The IMF praised Bangladesh's interim government for stabilizing the country amid economic challenges. Following a staff visit, the IMF noted the authorities' efforts to address issues like slowing economic activity, inflation, and foreign exchange pressures. The review follows Nobel laureate Yunus's recent appointment and U.S. promises of economic support.

The International Monetary Fund (IMF) on Monday commended Bangladesh's swift formation of an interim government, which has significantly contributed to the country's stabilization. The IMF highlighted that new authorities have been proactive in tackling economic challenges despite ongoing difficulties.

In their review following a Sept. 24-30 visit, IMF staff endorsed Bangladesh's efforts to make economic adjustments amid slowing activity, soaring inflation, and pressures on foreign exchange reserves. 'The timely formation of an interim government has helped stabilize political and security conditions, fostering a gradual return to normalcy in the economy,' the report stated.

This review follows the recent appointment of Nobel laureate Muhammad Yunus, who assumed office after the ousting of Prime Minister Sheikh Hasina amid intense protests. A U.S. delegation also pledged economic support during a visit this month.

IMF officials reiterated their commitment to supporting Bangladesh and collaborating on reforms to bolster its economic agenda. 'We support the authorities' efforts to initiate policy adjustments, including continued monetary tightening and rationalizing non-priority capital spending, in response to these challenging circumstances,' the IMF staff noted, emphasizing concerns over declining tax revenues and spending pressures.

(With inputs from agencies.)