Bangladesh may pull out of its $4.7 billion loan agreement with the International Monetary Fund (IMF) if further conditions are imposed, warned Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser.

Speaking at a budget seminar in Dhaka on Saturday, Chowdhury said, “Bangladesh will withdraw if the IMF imposes more conditions for loan releasing. Because if all the conditions of the organisation are followed, the economy will become weak.”

His remarks come amid growing uncertainty over the release of the fourth and fifth instalments of the six-part loan programme. Bangladesh signed the deal in January 2023 to stabilise its foreign exchange reserves.

The country has so far received three tranches—$476 million, $682 million, and $1.15 billion—disbursed between February and June last year.

At the seminar, held at the Bangladesh Agricultural Research Council, experts urged the government to increase the agriculture budget with defined targets.

Recommendations also included cutting VAT on raw material imports for poultry feed and improving farmers’ access to credit and incentives.

Bangladesh is due to graduate to developing-country status next year, heightening the importance of economic stability. However, concerns are mounting that stringent IMF conditions—potentially involving fiscal tightening and reform mandates—may prove too burdensome for the economy in its current state.