Bangladesh is looking to stronger US support to advance its efforts to secure financing from the International Monetary Fund (IMF), while China has signalled interest in expanding investment in the country’s power and energy sectors, offering a potential boost to economic recovery and energy security.
The signals came during separate meetings between Bangladesh’s delegation and officials from the US Treasury Department and the Export-Import Bank of China (China Exim Bank) on the sidelines of the IMF-World Bank annual meetings in Bangkok, Thailand, on Wednesday, officials familiar with the discussions told the media.
Washington’s position carries particular weight in Bangladesh’s pursuit of IMF financing because the United States holds veto power over the institution’s decisions. The US Treasury Department assured the delegation of cooperation in areas including debt management and bilateral relations, officials said.
A member of the Bangladesh delegation said China Exim Bank had expressed interest in increasing investment in Bangladesh’s power and energy sectors. The bank also informed the delegation that its chairman would visit Dhaka next week, raising the prospect of further engagement on investment.
Dhaka seeks stronger US backing
After meeting US Treasury officials, Finance Minister Amir Khosru Mahmud Chowdhury said Bangladesh had received less support from Washington than it had expected in the past. He expressed hope that improved bilateral relations would translate into greater assistance.
The discussions covered debt management, bilateral relations and other issues, he said, adding that closer ties had raised the government’s expectations of stronger US support.
Citing Bangladesh’s purchases of aircraft from the United States and imports of goods, including soybeans, the finance minister said the country should receive greater American support in advancing its development and economic interests.
Aid assurances expected within months
Prime Minister’s Economic Adviser Dr Rashed Al Mahmud Titumir said the IMF, World Bank, US Treasury Department and other international organisations had acknowledged the difficult economic conditions inherited by the current government, including high inflation.
The conflict in the Middle East had added to the economic pressure, he said.
According to Titumir, international financial institutions and US officials had recognised the government’s efforts to address these challenges and assured Bangladesh of their support.
The government expects confirmation of the assistance within the next two to three months, he added.