Bangladesh to receive $2bn assistance from IMF, WB amid Middle East crisis

The International Monetary Fund (IMF) and World Bank have pledged additional financial assistance to Bangladesh beyond regular budget support to help offset deficits caused by the Middle East war.

Bangladesh may receive up to $2 billion in emergency assistance by June, delegation sources said.

Finance Minister Amir Khosru Mahmud Chowdhuryconfirmed the development after meetings with senior officials of the two institutions on the sidelines of the IMF–World Bank Spring Meetings in Washington. He is currently leading an 11-member delegation.

On April 13, the minister held separate meetings with IMF Executive Director Urjit Patel, World Bank Vice President for South Asia John Jutt, and other officials.

Speaking to journalists, Amir Khosru hinted at enhanced support under the IMF’s existing programme. “Installment release is one matter, but under the programme there could be something even better,” he said.

He expressed optimism that Bangladesh would secure additional funding by June and in the next budget. “The discussions have been successful overall. I believe we will largely succeed in addressing the deficit we have faced,” he added.

The IMF has already announced up to $50 billion in emergency support for developing and low-income countries, while the World Bank has pledged up to $25 billion.

Bangladesh is currently under a $5.5 billion IMF loan programme, with $1.3 billion due in two installments by June.

The World Bank is also expected to provide $400 million in budget support.

The finance minister further said the World Bank is ready to provide “all-out support,” including both policy backing and funding. “We assumed office with existing economic deficits, and the war has created a major shortfall. Various measures have been discussed to address these issues. The World Bank will remain active in providing solutions, both in terms of policy and funding,” he noted.