Bangladesh: Third and Fourth Reviews Under the Extended Credit Facility Arrangement and the Arrangement Under Extended Fund Facility, Requests for Extension of the Arrangements, Augmentation and Rephasing of Access, Modification of Performance Criteri

Third and Fourth Reviews Under the Extended Credit Facility Arrangement and the Arrangement Under Extended Fund Facility, Requests for Extension of the Arrangements, Augmentation and Rephasing of Access, Modification of Performance Criteria, Waiver of Nonobservance of Performance Criterion, and Third and Fourth Reviews Under the Resilience and Sustainability Facility Arrangement-Press Release; Staf

Bangladesh: Third and Fourth Reviews Under the Extended Credit Facility Arrangement and the Arrangement Under Extended Fund Facility, Requests for Extension of the Arrangements, Augmentation and Rephasing of Access, Modification of Performance Criteria
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Volume/Issue: Volume 2025 Issue 150
Publication date: June 2025
ISBN: 9798229015714
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Exports and Imports , Finance , Public Finance , Environmental Economics , VAT measure , Sustainability facility arrangement , exchange rate reform , forex dealer , EFF arrangement , Commercial banks , Financial sector stability , Exchange rates , Global

Summary

This paper discusses Bangladesh’s Third and Fourth Reviews under the Extended Credit Facility Arrangement and the Arrangement under Extended Fund Facility, Requests for Extension of the Arrangements, Augmentation and Rephasing of Access, Modification of Performance Criteria, Waiver of Nonobservance of Performance Criterion, and Third and Fourth Reviews under the Resilience and Sustainability Facility (RSF) Arrangement. Bangladesh’s program performance has been broadly satisfactory despite the difficult political and economic context and increased downside risks. Advancing the reform agenda is critical to restoring economic stability, protecting the vulnerable, and supporting inclusive and environmentally sustainable growth. Sustained structural reforms are essential for Bangladesh to achieve its goal of attaining upper middle-income status. Key priorities include diversifying exports, attracting greater foreign direct investment, strengthening governance, and enhancing data quality. Building resilience to natural disasters is essential for achieving high and inclusive growth. The RSF’s focus on strengthening institutions and policy coordination as well as on enhancing the efficiency of climate-related spending remains critical, including in helping mobilize climate finance.