International Monetary Fund (IMF) has expressed satisfaction over the current stability of Bangladesh’s economy, said Economic Adviser Dr Salehuddin Ahmed.

He made the remark while talking to reporters after a meeting with the IMF delegation at the Secretariat on Sunday (April 6).

Dr Salehuddin said the IMF is mainly focused on increasing the tax-to-GDP ratio, ensuring more stability in the foreign currency reserve, and reducing the budget deficit.

“They also discussed the plan to bring the VAT rate down to a single digit. We are trying, but it’s not possible to switch to a single rate all at once,” he said.

Regarding the next loan installment, the adviser said the IMF will disburse the funds in two tranches after completing their review.

“They will examine how we plan to raise the tax-GDP ratio, which is now only 7 percent, and how we improve tax collection while preventing leakage in tax administration,” he added.

In response to a question from journalists about the IMF’s views on the economy, Dr Salehuddin said, “They said Bangladesh's economy is now relatively stable, progressing, and on the right track. But they will look further into the details after the review.”

Regarding the single VAT rate, he said, “We will try to move towards it, but reaching a single rate immediately is not possible.”

When asked about allowing the market to determine the exchange rate of the dollar, the adviser said, “We will discuss the matter with Bangladesh Bank.”

BDST: 1648 HRS, April 6, 2025
MSK