Private companies are spearheading Bangladesh’s growth with their energy and optimism, putting the economy on a path to cross the $1-trillion mark by 2040, according to a top global consulting firm. 

The International Monetary Fund is set to tag three binding conditions and a host of structural reforms for the prospective $4.5 billion loan to Bangladesh, as the Washington-based multilateral lender looks to bring in lasting reforms in the country.

Local denim has maintained its top position in the US markets despite the ongoing global crisis as the demand for garments made from the widely used fabric is soaring among American consumers.

The U.S. dollar was firmly higher against major currencies on Monday, while China’s yuan slipped as sentiment was soured by rising COVID cases and tightening restrictions in some cities in the world’s second-biggest economy.

The default-loan narrative has smeared our otherwise powerful story of graduation from the Least Developed Country (LDC) status.

This fiscal year alone, the Bangladesh Bank has supplied more than $4.5 billion to the market to support the exchange rate, while the import bill averages $6 billion a month.

The government and the IMF team have reached a staff-level agreement to support the authorities’ reform policies under a new 42-month ECF/EFF arrangement of about $3.2 billion, and a concurrent RSF arrangement of about $1.3 billion.

The current lending rate, which equals the inflation rate, has brought about major challenges for the economy as a negative interest rate has prompted many large clients to borrow hugely despite subdued demand, giving them the leeway to divert funds to the unproductive sector. 

The exchange rate of dollar needs to be freed to make the garment business profitable at this crisis time, said a top leader of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today.

"Complacency has brought us to the current forex reserve situation,” said Salehuddin Ahmed, former governor of the Bangladesh Bank.

Prime Minister Sheikh Hasina yesterday instructed Bangladesh Bank to intervene if any bank faced a dollar shortage while opening letters of credit for importing food, fertiliser and other agricultural inputs to ensure uninterrupted food supply.

Bangladesh Bank is anticipating the pressure on the balance of payments will blow over by the end of this fiscal year thanks to hearty assistance from development partners –-- an outlook termed wishful by economists.

Known knowns -- is what best sums up the prognosis of the visiting International Monetary Fund mission so far as it looks to thrash out the conditions for the prospective $4.5 billion loan.

Around 30 percent people in Bangladesh are facing food scarcity though the country’s economy made a recovery from the pandemic-induced shocks, says a World Bank survey.

Bangladesh will continue to see high deficit in its current account balance till 2027, predicts the International Monetary Fund.

Employers in Bangladesh required nine out of the last 10 jobseekers they hired in the past five years to possess at least basic digital literacy and skills, found an Asian Development Bank (ADB) and LinkedIn survey.  

The knitwear segment has retained its position as the country’s biggest export earner in the readymade garment industry and among all the sectors of Bangladesh. 

A Bangladesh delegation will discuss a $4.5 billion loan with International Monetary Fund officials in Washington next week.

Bangladesh is currently weathering a period of heightened external pressure and economic headwinds like it has done since the outbreak of the coronavirus pandemic and kept growing, said a top official of a multinational bank.  

Bangladesh is currently suffering from an acute shortage of skilled workers and managers.