emirates7 - The International Monetary Fund (IMF) said it was in negotiations with the Bangladeshi government for a new assistance programme at Dhaka's request, as the South Asian country reels from the economic fallout of the Iran war, AFP reported.

"The Bangladeshi authorities have requested a new IMF-supported programme," said Ivo Krznar, the Fund's Mission Chief for Bangladesh. "IMF staff are in discussions with the authorities on their reform agenda and policy priorities."

In March, Bangladesh's government said it was seeking loans of around US$2 billion from multilateral donors to tackle energy security concerns sparked by the surging fuel prices caused by the war on Iran.

Last week, the World Bank said it had approved a US$350 million loan to help Bangladesh manage rising fuel import pressures and strengthen energy security after shortages linked to the Middle East war.