Bangladesh secures $4.7 billion from IMF as Pakistan, Sri Lanka see delays

People arrive for the IMF/World Bank Annual Fall Meetings Plenary Session in Washington, US, on October 18, 2019. (AFP/File)
Short Url
Updated 05 February 2023
Follow

Bangladesh secures $4.7 billion from IMF as Pakistan, Sri Lanka see delays

  • Bangladesh has seen a sharp widening of its current account deficit, depreciation of its currency
  • Pakistan, IMF negotiations expected to begin from today as Islamabad seeks to shore up its foreign reserves

The International Monetary Fund (IMF) has approved loans of $4.7 billion to Bangladesh for disbursal starting immediately, making it the first to secure such funds out of three South Asian countries that applied last year amid economic trouble.

The loans are a win for Prime Minister Sheikh Hasina ahead of a general election early next year and will help the country, which has seen a sharp widening of its current account deficit, depreciation of the taka currency and a decline in its foreign exchange reserves.

Bangladesh will get about $3.3 billion under the IMF's extended credit facility and related arrangements, with an immediate disbursement of about $476 million. The IMF executive board also approved about $1.4 billion under its newly created Resilience and Sustainability Facility for climate investments for Bangladesh, the first Asian country to access it.

The IMF said the loans will "protect macroeconomic stability and rebuild buffers, while helping to advance the authorities’ reform agenda". The agenda includes creating fiscal space to enable greater social and developmental spending, strengthening Bangladesh's financial sector, boosting fiscal and governance reforms and building climate resilience.

"Since independence, Bangladesh has made steady progress in reducing poverty and significant improvements in living standards," Antoinette M. Sayeh, the IMF's deputy managing director, said in a statement.

"However, the COVID-19 pandemic and subsequent Russia’s war in Ukraine interrupted this long period of robust economic performance," Sayeh added. "Multiple shocks have made macroeconomic management challenging in Bangladesh."

The country last year also sought $2 billion from the World Bank and the Asian Development Bank amid efforts to bolster its foreign exchange reserves.

Bangladesh's regional counterparts, Sri Lanka and Pakistan, are doing much worse economically but have not been able to get final approval for IMF loans.

Bangladesh's current account deficit hit a record $18.7 billion in the last financial year, which ended on June 30, as exports of garments failed to offset a surge in energy costs. The Bangladesh central bank expects the deficit to fall to about $6.8 billion at the end of the current fiscal year.

The government has also raised fuel and energy prices in recent months as it approached the IMF. It announced a 5% increase in retail power prices from Wednesday, the second such rise this month.


‘Look ahead or look up?’: Pakistan’s police face new challenge as militants take to drone warfare

Updated 14 January 2026
Follow

‘Look ahead or look up?’: Pakistan’s police face new challenge as militants take to drone warfare

  • Officials say militants are using weapons and equipment left behind after allied forces withdrew from Afghanistan
  • Police in northwest Pakistan say electronic jammers have helped repel more than 300 drone attacks since mid-2025

BANNU, Pakistan: On a quiet morning last July, Constable Hazrat Ali had just finished his prayers at the Miryan police station in Pakistan’s volatile northwest when the shouting began.

His colleagues in Bannu district spotted a small speck in the sky. Before Ali could take cover, an explosion tore through the compound behind him. It was not a mortar or a suicide vest, but an improvised explosive dropped from a drone.

“Now should we look ahead or look up [to sky]?” said Ali, who was wounded again in a second drone strike during an operation against militants last month. He still carries shrapnel scars on his back, hand and foot, physical reminders of how the battlefield has shifted upward.

For police in the northwestern Khyber Pakhtunkhwa (KP) province, the fight against militancy has become a three-dimensional conflict. Pakistani officials say armed groups, including the Tehreek-e-Taliban Pakistan (TTP), are increasingly deploying commercial drones modified to drop explosives, alongside other weapons they say were acquired after the US military withdrawal from neighboring Afghanistan.

Security analysts say the trend mirrors a wider global pattern, where low-cost, commercially available drones are being repurposed by non-state actors from the Middle East to Eastern Europe, challenging traditional policing and counterinsurgency tactics.

The escalation comes as militant violence has surged across Pakistan. Islamabad-based Pakistan Institute for Conflict and Security Studies (PICSS) reported a 73 percent rise in combat-related deaths in 2025, with fatalities climbing to 3,387 from 1,950 a year earlier. Militants have increasingly shifted operations from northern tribal belts to southern KP districts such as Bannu, Lakki Marwat and Dera Ismail Khan.

“Bannu is an important town of southern KP, and we are feeling the heat,” said Sajjad Khan, the region’s police chief. “There has been an enormous increase in the number of incidents of terrorism… It is a mix of local militants and Afghan militants.”

In 2025 alone, Bannu police recorded 134 attacks on stations, checkpoints and personnel. At least 27 police officers were killed, while authorities say 53 militants died in the clashes. Many assaults involved coordinated, multi-pronged attacks using heavy weapons.

Drones have also added a new layer of danger. What began as reconnaissance tools have been weaponized with improvised devices that rely on gravity rather than guidance systems.

“Earlier, they used to drop [explosives] in bottles. After that, they started cutting pipes for this purpose,” said Jamshed Khan, head of the regional bomb disposal unit. “Now we have encountered a new type: a pistol hand grenade.”

When dropped from above, he explained, a metal pin ignites the charge on impact.

Deputy Superintendent of Police Raza Khan, who narrowly survived a drone strike during construction at a checkpoint, described devices packed with nails, bullets and metal fragments.

“They attach a shuttlecock-like piece on top. When they drop it from a height, its direction remains straight toward the ground,” he said.

TARGETING CIVILIANS

Officials say militants’ rapid adoption of drone technology has been fueled by access to equipment on informal markets, while police procurement remains slower.

“It is easy for militants to get such things,” Sajjad Khan said. “And for us, I mean, we have to go through certain process and procedures as per rules.”

That imbalance began to shift in mid-2025, when authorities deployed electronic anti-drone systems in the region. Before that, officers relied on snipers or improvised nets strung over police compounds.

“Initially, when we did not have that anti-drone system, their strikes were effective,” the police chief said, adding that more than 300 attempted drone attacks have since been repelled or electronically disrupted. “That was a decisive moment.”

Police say militants have also targeted civilians, killing nine people in drone attacks this year, often in communities accused of cooperating with authorities. Several police stations suffered structural damage.

Bannu’s location as a gateway between Pakistan and Afghanistan has made it a security flashpoint since colonial times. But officials say the aerial dimension of the conflict has placed unprecedented strain on local forces.

For constables like Hazrat Ali, new technology offers some protection, but resolve remains central.

“Nowadays, they have ammunition and all kinds of the most modern weapons. They also have large drones,” he said. “When we fight them, we fight with our courage and determination.”