IMF has approved of Bangladesh’s request for a USD 4.7 billion loan in January 2023 with the aim of preserving its macroeconomic stability, protecting the vulnerable and promoting inclusive and green growth. The fund has been approved under the provisions of the Extended Fund Facility (EFF), the Extended Credit Facility (ECF), and the Resilience and Sustainability Facility (RSF) arrangements. RSF is particularly designed for combating climate change challenges and strengthening private climate investments. However, access to the fund will be ensured only if the reform measures stipulated by IMF are implemented. There are 11 reform measures (RM) under the RSF based on the Government of Bangladesh (GOB)’s 3 reform priorities. Under this context, the Centre for Policy Dialogue (CPD) has come up with a set of policy recommendations for reducing air and plastic pollution in light of the reform measures suggested by IMF. The recommendations by CPD involve revenue raising options as a part of ECF and EFF while also emphasising infrastructure, climate fiscal management, and private climate finance in green cities as a part of RSF.
Authors: Fahmida Khatun, Syed Yusuf Saadat, Afrin Mahbub & Marium Binte Islam
Publication Period: May 2023