Dhaka seeks WB funds for energy, IMF loan

Bangladesh has sought financial support from the World Bank to cushion mounting energy costs amid global uncertainty and the conflict in the Middle East, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said on Monday, expressing optimism that the lender would respond positively.

The government is also negotiating a fresh financing arrangement with the International Monetary Fund (IMF), while pursuing economic reforms tailored to the country’s priorities, financial realities and institutional capacity.

The minister made the remarks while speaking to journalists on the sidelines of the 2026 Annual Meetings of the World Bank Group and the IMF, which began in Bangkok, Thailand, on Monday.

Amir Khosru said Bangladesh was facing additional expenditure pressures in the energy sector and needed financial support to manage the burden. Cooperation with the World Bank should not be limited to existing funding facilities, as the country also needs assistance to address the economic fallout from global uncertainty and energy market disruptions.

He said discussions were underway on a structural agreement and the finalisation of Bangladesh's Country Partnership Framework with the World Bank.

The minister stressed the importance of aligning ongoing initiatives with the objectives and commitments outlined in the government's election manifesto. He expressed optimism that both sides would move forward through coordination, adding that discussions remained ongoing and Bangladesh was moving in the right direction.

Bangladesh is also seeking fresh IMF financing while prioritising banking-sector reforms, revenue mobilisation, investment expansion and employment generation. The annual meetings, scheduled to continue until October 18, provide an opportunity for the country to discuss financing needs and economic priorities with development partners.

Prime Minister's Adviser on Finance and Planning Dr Rashed Al Mahmud Titumir said the World Bank and the IMF had reached a broad policy understanding with the government on the fundamental objectives of its reform agenda, including economic recovery, financial discipline, higher tax-to-GDP ratio, expanded social protection and job creation.

He said the government had formulated a five-year economic strategy to restore and rebuild the economy. Financial-sector discipline, industrialisation, employment generation and social protection were among its key priorities.

According to Titumir, alignment between the government's reform agenda and the core objectives of international development partners would facilitate implementation. However, he emphasised that ownership of the reform process would remain with the government.

Bangladesh is discussing a new financing arrangement with the IMF to replace its previous loan programme, which was expanded to $5.5 billion. The proposed new package is estimated at around $4 billion to $4.5 billion.

The government wants to implement reforms in phases, taking into account the country's economic circumstances and institutional capacity.

The banking sector remains a major concern. The finance minister said Bangladesh might require around Tk 16,000 crore annually over the next five to eight years to restructure and recapitalise banks.

The government is also planning to expand social protection programmes, including the Family Card initiative, to support low-income households. Titumir said the government had refrained from fully adjusting domestic fuel prices in line with international markets to reduce the burden on consumers.

Referring to assessments by independent research organisations, he said such social protection programmes could help reduce the poverty rate by around five percentage points over five years. Financing for climate resilience, renewable energy and infrastructure development was also needed, he added.

Titumir said discussions with the Thai Chamber of Commerce had highlighted opportunities for investment in processing and exporting seasonal fruits such as mangoes, jackfruit and lychees. Improved storage and processing facilities could reduce wastage, ensure better prices for farmers and expand exports to international markets.

The two countries have also discussed improving maritime connectivity between Chattogram Port in Bangladesh and Ranong Port in Thailand.

Bangladesh is exploring opportunities to benefit from free trade agreements with ASEAN member states and the Regional Comprehensive Economic Partnership framework. The objective is to build production networks, increase value addition, expand exports and generate employment rather than merely reduce the bilateral trade deficit.

The government aims to combine domestic resource mobilisation, diversified financing and local and foreign investment to support economic recovery and reconstruction. Discussions with the IMF, the World Bank and other development partners are expected to continue throughout the annual meetings in Bangkok.