Talks between Bangladesh and the International Monetary Fund (IMF) over the next tranches of a $4.7 billion loan ended in Washington without an agreement. Key sticking points include IMF demands for more flexible exchange rates and stronger revenue collection. While progress has been made on tax reforms, Bangladesh’s central bank resists rapid changes to exchange rate policies, arguing for tighter control to ensure economic stability amid inflation and concerns over currency manipulation. The IMF insists on greater action and a clear timeline for reforms. However, Bangladesh’s officials remain firm that they won’t accept conditions unsuitable for their current situation, emphasizing improved economic indicators, stable reserves, and rising exports. They consider IMF funding helpful but not critical, focusing instead on long-term reforms and maintaining central bank autonomy.

Bangladesh’s readymade garment (RMG) exports to the European Union (EU) soared by nearly 37% year-on-year to $3.69 billion in January–February 2025, supported by a 39% rise in shipment volumes. Despite this impressive growth, average unit prices fell by 1.46%, reflecting ongoing profitability challenges. Industry experts attribute the sector’s strong performance to value-added manufacturing, duty-free EU access, compliance improvements, and productive labor relations. As EU apparel imports overall rose in both volume and value, Bangladesh’s market share solidified, outpacing major competitors except China. Looking forward, Bangladesh is expected to maintain momentum and attract more orders, but experts stress the need for strategic adaptation, innovation, and further value addition to protect margins and ensure long-term sustainability amid global price pressures.

Poverty in Bangladesh is worsening as inflation consistently outpaces wage growth, leaving millions unable to afford basic necessities. Over the past three years, food and living costs have surged, but incomes have stagnated, pushing almost three million more people into extreme poverty in 2025. Real wages lag behind rising prices, particularly affecting those in the informal sector, who make up most of the workforce and lack job security. Economic growth is slowing due to weak investment and revenue collection, while the government’s social protection efforts are insufficient. Experts and the World Bank stress the urgent need for inflation control, social safety nets, and wage policies linked to inflation to prevent further deepening of poverty and inequality.