IMF team to visit Dhaka for talks on new loan programme, pay scale

An International Monetary Fund (IMF) delegation will visit Dhaka from July 12 to 16 to discuss a proposed new loan programme, with public sector pay reform, fiscal sustainability and structural economic reforms expected to dominate the agenda.

According to a source from Finance Ministry, Bangladesh has sought a new IMF lending package focused on a revised reform agenda, banking sector restructuring and revenue mobilisation, replacing the framework agreed under the previous Awami League government.

The mission will begin with two key meetings at the Finance Division. Discussions will cover revenue policy, the national budget, and domestic and external financing plans, followed by a separate session on the government's proposed Ninth National Pay Scale and its fiscal implications.

The new pay scale is expected to require Tk 44,000 crore in the current fiscal year and more than Tk 106,000 crore annually once fully implemented.

IMF officials are expected to seek details on how the government plans to finance the additional spending amid weak revenue collection, vulnerabilities in the banking sector and persistent inflation.

Economists say strengthening tax collection and implementing banking sector reforms remain critical to ensuring fiscal stability, warning that introducing a large pay increase without sustainable financing could widen the budget deficit and add to inflationary pressures.