Govt will not take loans from IMF by accepting all conditions: Khosru

Finance Minister Amir Khosru Mahmud Chowdhury has said that the government will not accept all the conditions of the International Monetary Fund (IMF) in order to take loans.

"Decisions will be taken after safeguarding the interests of the country's people and businesses," he said while speaking with journalists at his office in the Secretariat today (19 April), after returning from the IMF-World Bank Spring Meetings.

Khosru stressed that the relationship with the IMF is not charitable but commercial.

He further said, "There are many ongoing discussions between the government of Bangladesh and the IMF and World Bank, and the issue is not only about the amount of money involved, which many people fail to understand."

He added that loan discussions with the IMF are ongoing and may continue for another 15 to 20 days, or even up to a month.

"We have not fully agreed with the IMF in the discussions. We are reviewing what the IMF is asking for, and we also have our own expectations. We are an elected government, and we will not accept everything just because someone asks us to," Khosru said.

The current government will not take any decision that creates pressure on the people or businesses, he added.

Khosru said discussions with the World Bank, Asian Development Bank (ADB), and Infrastructure Bank have already been completed.

He said the current IMF loan programme is not tied to the months of June or July.

"Many people do not understand this. The current IMF programme was taken under the previous Awami League government and includes many conditions. Its tenure is only seven months. Some of those conditions may not be acceptable to the current government."

"We will decide whether we will proceed with the next programme," Khosru added.

Responding to a journalist's comment that the introduction of the Family Card may have caused the IMF to step back or impose new conditions, the finance minister said there is no connection between the Family Card and IMF loans.

"On the contrary, the Family Card has been widely appreciated. It will help deliver the benefits of the economy to poor people."

When asked whether the increase in fuel prices was made to meet IMF conditions, he said fuel prices have increased globally.

"We are not the only ones who have increased prices. Everyone has asked why we are not increasing fuel prices. In Sri Lanka, fuel prices were increased by up to 25%."

He added, "If we do not increase fuel prices, pressure on the treasury increases, and with the upcoming budget, it is not easy to manage. So, we have increased it only as much as necessary. This has no relation with the IMF."

Asked whether inflation will rise, he said it may or may not increase. "The recent increase in fuel prices is temporary and not significant. Fuel has a small share in the inflation basket."

He further said representatives from the IMF, World Bank, ADB, Infrastructure Bank, and IDB will visit Bangladesh. "All of them want to work with the current government."

He added that their policies align with the government's election manifesto, so they are interested and supportive of cooperation.

Khosru also said that the presidents of the World Bank and the Asian Development Bank will visit Bangladesh.