the political economy imf programme 4169466

Bangladesh's new BNP government faces a fragile economy with low growth, high inflation, and a banking sector burdened by non-performing loans. The ongoing US-Israel conflict with Iran has increased energy prices and disrupted trade, impacting Bangladesh as a net energy importer. The government's decision on the IMF program will affect fiscal policy, subsidy management, and external financing. The primary commercial mechanism is the squeeze on fiscal space due to higher energy import costs and subsidy burden, affecting the banking sector's asset quality and the broader economy's stability.