Bangladesh almost clinched the third instalment of a $4.7 billion IMF loan, hitting all but one key target for December 2023.

While the minimum net international reserves (NIR) fell short by $58 million, other targets like tax revenue collection and budget deficit were met.

The government surpassed the revised tax target of Tk 143,640 crore, a positive change after missing it last time. The budget deficit also stayed within the IMF ceiling of Tk 90,520 crore, thanks to a low September deficit of Tk 12,402 crore.

Bangladesh achieved other quantitative targets for external payment arrears, reserve money, priority social spending, and capital investment. It even met the indicative target for tax revenue despite previous struggles.

However, the NIR stood at $17.2 billion, slightly below the mandatory $17.78 billion requirement. Central bank officials believe the final calculation might close this gap, similar to the waiver granted for a NIR shortfall in June.

Structural reforms are also on track. The government will introduce a formula-based fuel price adjustment mechanism by March, with adjustments every three months based on global markets.

Quarterly GDP data releases will also resume in December, after delays due to the national election.