DHAKA, MAR 30 (V7N)- Bangladesh is planning to seek $2 billion in foreign assistance to address mounting economic pressures stemming from domestic challenges and ongoing instability in the Middle East.

Governor of Bangladesh Bank, Md. Mostaqur Rahman, revealed the plan during a meeting with senior economic journalists at the central bank headquarters in Motijheel on Sunday.

He confirmed that discussions are already underway with the International Monetary Fund, while the Economic Relations Division (ERD) is exploring additional funding sources. The initiative is aimed at stabilizing the country’s Balance of Payments (BoP) amid global and regional uncertainties.

Highlighting tensions in the Middle East, the governor said the central bank is adopting a cautious “wait and watch” approach to navigate potential economic fallout.

Rahman outlined three key priorities for his administration: strengthening food security and the rural economy, supporting small and medium enterprises as the backbone of growth, and reviving closed factories by encouraging banks to finance their reopening to boost employment without triggering inflation.

He maintained a firm stance on monetary policy, stating that lowering interest rates is not advisable at this stage, as controlling inflation remains the central bank’s top priority.

The governor expressed satisfaction with current foreign exchange reserves and projected a rise in remittance inflows by $2 billion to $2.5 billion by the end of the fiscal year, despite uncertainties linked to the Middle East crisis.

During the two-hour session, Deputy Governors Md Habibur Rahman and Nutun Nahar, along with central bank spokesperson Arif Hossain Khan, also participated.

Addressing concerns about expatriate workers, Rahman noted that crises often lead migrants to send back their total savings, temporarily boosting reserves, though prolonged conflicts could pose long-term risks.

Concluding the discussion, the governor emphasized resilience in the face of global challenges, saying Bangladesh must continue to adapt and maintain economic stability despite ongoing uncertainties.

END/AJ/RH/