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GDP ratio, implementing the VAT law and setting up an asset management company to dispose of soured loans.

Bringing down the banking sector’s default loans to within 10 percent and raising the capital adequacy ratio to the BASEL 3 requirement of 12.5 percent, periodically adjusting the fuel price, implementing the climate-related proposals made in the budget and on various international conferences and increasing remittance receipts through the formal channels are on the task list, according to Talukder.

Withdrawing the interest rate cap or cutting back on fertiliser subsidy and tax exemption were off the table, according to Kamal.

“The fact that IMF is with us will dissipate the market’s tension,” another official said.

Meanwhile, the IMF staff mission wrapped up its 15-day tour of Bangladesh yesterday with a meeting with think tanks to exchange views and to hear their opinion on the economy.

The think tanks include the Centre for Policy Dialogue, the Policy Research Institute of Bangladesh (PRI) and the South Asian Network on Economic Modelling (Sanem).

“They are expecting the pressure on reserves to dissipate in 2-3 months,” said one of the meeting participants on the condition of anonymity to describe a private conversation.

The next budget will be the key as the IMF will be watching if the government is being sincere about the reforms, he added.

“They [the IMF staff mission] are hopeful that the programme will work,” said another meeting participant.

The government’s ownership is crucial here, said Selim Raihan, executive director Sanem.

“If there is ownership, proper reforms will happen and our structural problems can be addressed.”

If the government can use the opportunity properly, the economy will become stronger and it will improve the capacity to absorb shocks, Raihan added.

“We are hopeful the programme with the IMF will be successful,” said Ahsan H Mansur, executive director of PRI.