Bangladesh is now the third South Asian country to have turned to the International Monetary Fund for financial assistance to facilitate its balance of payments and budget assistance. Sri Lanka and Pakistan are already in negotiations with the multilateral agency. The IMF said that it would discuss with Bangladesh its loan request, the Reuters reported.

According to reports earlier, Dhaka was looking at a loan of $4-4.5 billion.

Amid soaring crude oil prices, the South Asian country’s import bill has been steadily rising.

The country’s Finance minister A H M Mustafa Kamal however has maintained that this was a precautionary measure and that the economy was “in no way in trouble”.

Kamal has also sought increased funding from the Japan International Cooperation Agency (JICA) as global uncertainties have only increased. Hit by energy shortage, the country has now resorted to extensive power cuts.

Losses for many factories have also started to mount as they are being forced to cut down production due to the gas shortage. Businesses have urged the Sheikh Hasina government to ensure steady energy supply to factories and increase household load shedding to save energy.

According to a World Bank blog, the Russia-Ukraine war has disrupted global energy markets, generating the biggest surge in crude-oil prices since the 1970s. It further said that the consequences for global growth will be significant: higher energy prices alone could reduce global output by nearly 1 per cent by the end of 2023.

Also read: Bangladesh PM Sheikh Hasina urges citizens to consume less electricity amid global price rise