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place in one go, will be sent once Prime Minister Tarique Rahman signs off on key conditions.

While funds under RFI would be provided without conditionality or reviews, a commitment to continuing with key reforms under the $5.5 billion loan programme is needed.

The government is weighing the implications of implementing the conditions for the emergency funding, the finance ministry officials.

The reforms that the IMF is insisting on are articulated in the Article IV Consultation in January.

The IMF pressed for continuation of tight monetary policy, further market-based exchange rate reforms, faster restructuring of weak banks asset quality reviews of state-owned banks and amendments to the Bangladesh Bank autonomy law.

The other conditions include reducing subsidies on electricity and fertiliser, and raising revenue collection by 0.7 percent of GDP in the next fiscal year.

Recent IMF Technical Assistance on tax policy indicates scope to raise revenue by more than 2 percent of GDP in the short-term through unifying the VAT rate at 15 percent and narrowing VAT exemptions; raising the minimum turnover tax rate to 2 percent and applying it to all companies; introducing a modern excise act for tobacco; and introducing excise taxes on imported motive fuels at the equivalent of $50 per tonne of greenhouse gas emissions plus the pollution cost, says the Article IV report.

Rationalising non-energy subsidies could help create fiscal space.

With no premium between the official and the market exchange rates, the remittance subsidy (about 0.15 percent of GDP) is no longer necessary to encourage repatriation through official channels and should be phased out.

A comprehensive strategy to optimise production capacity and adjust fertiliser prices would help reduce fertiliser subsidies, which reached 0.8 percent of GDP in fiscal 2024-25.

Enhancing targeted transfers while broadening the social safety net is vital to protecting the vulnerable, the IMF said.

The authorities have consolidated social programmes from 150 to 95 and improved beneficiary eligibility. However, the coverage of the poor population is low. The recently started development of a dynamic social registry will support better targeting and coverage of social assistance.

In the near-term, the government could use the poverty map to inform the allocation of social transfers while rationalising energy tariffs.

The Bangladesh Bank should establish procedures for bank viability assessments and engage reputable local and international experts to support restructuring/resolution work and strengthen operational capacity.

Non-viable banks should not be merged before cleaning up their balance sheets and evaluating the cost of integrating banks and their systems.