Bangladesh has announced the termination of its loan agreement with the International Monetary Fund (IMF), marking a shift away from reliance on international financial institutions. Finance Minister Amir Khosru Mahmud Chowdhury made the declaration on Sunday during the inaugural ceremony of "World Investor Week 2026" in Dhaka, stating that the country would no longer accept conditions imposed by the IMF or similar agencies such as the World Bank and Asian Development Bank (ADB).
The decision comes after a series of negotiations beginning in 2022 to address Bangladesh’s foreign currency shortfall. In early 2023, under the previous Awami League government, Bangladesh signed a $4.7 billion loan deal with the IMF, which was later increased to $5.5 billion during the interim administration’s tenure. The country has so far received approximately $3.64 billion in five tranches, with the release of the sixth tranche stalled for about a year amid disagreements over loan conditions.
Following the change in government in February 2026, the current administration engaged in renewed discussions with the IMF, proposing to end the existing program and seek a new lending facility allegedly worth $4 billion to $4.5 billion over three years. The IMF formally acknowledged Bangladesh’s application for a new lending program in June but did not specify the proposed loan size. A mission was dispatched to evaluate the country’s economic situation and reform commitments.
Despite ongoing talks, Finance Minister Amir Khosru asserted that Bangladesh intends to forge an independent financial path. He emphasized plans to develop domestic capital and bond markets as alternatives to expensive bank loans and international assistance. “We have cancelled the IMF loan agreement and taken the initiative to stand on our own feet,” he said, projecting that Bangladesh’s economy could reach $1 trillion by 2034 without external funding.
The minister outlined ambitions to incorporate major infrastructure projects, such as the Padma Bridge and Jamuna Bridge, into the capital markets to attract investment and improve financial sustainability. He further highlighted reforms aimed at strengthening the capital market, including accelerating the initial public offering (IPO) approval process and introducing new financial products like convertible bonds, real estate investment trusts (REITs), and equity stock options.
Supporting these initiatives, Tanvir Shahriar Goni, the Prime Minister’s Special Assistant for Investment and Capital Market Affairs, indicated that significant capital market reforms are underway, aiming to elevate Bangladesh’s market to regional standards within two years. Meanwhile, Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC), announced a plan to reduce the IPO approval timeline to three months, addressing a two-and-a-half-year lull in new listings.
Despite the reform efforts, restoring investor confidence remains a key challenge. Dhaka Stock Exchange Chairman Mominul Islam noted that maintaining trust in the market is critical, even as structural changes continue.
The government’s move to withdraw from the IMF program and focus on domestic financial mechanisms marks a significant policy pivot, reflecting a broader ambition to reduce dependency on international lending agencies while fostering internal economic resilience and capital market growth.