What did the country’s finance minister say
Bangladesh’s economy is worth $416 billion and it was termed as the fastest growing economy in the last few years. But the effect of the ongoing war between Russia and Ukraine is now visible on the economy of this country. Due to this war, the prices of energy and food items are increasing. This is the reason why the import bill of Bangladesh is increasing and the current account is also in deficit.
In the words of the Finance Minister, ‘A letter has been written to the IMF and their help has been sought. But we have not mentioned anywhere how much help we need. He further said, ‘We are waiting for their terms. If the terms of the IMF are in favor of the country and in line with our development policy, then we will get this loan. If the conditions are not as per our liking, then we will not approve this loan.
Foreign debt increased on the country
On Tuesday, it was informed by a senior IMF official that Bangladesh has requested for a loan. He has sought this loan on the basis of Global Religious and Sustainability Trust. In such funds, 150 per cent quota is fixed for the country. At the same time, according to the country’s leading newspaper Daily Star, it needs $ 4.5 billion in aid from the IMF at this time. The country has made a lot of economic progress during the tenure of Prime Minister Sheikh Hasina, but it is not enough.
Bangladesh’s foreign debt has increased to 21.8% on GDP. At the same time, spending on imports has increased by 44 percent, forex reserves have come down to $ 42 billion and only for 5 months is enough. The country’s deficit stood at $17.2 billion from July to May, compared to $2.7 billion a year ago. Apart from Bangladesh, Sri Lanka and Pakistan also sought loans from the IMF this year.