Photo: Collected
Though the country faces economic challenges, the situation is not as critical as suggested by the International Monetary Fund (IMF), said Finance Adviser Dr Salehuddin Ahmed on Thursday. "The IMF has expressed various apprehensions, but the economy is not as bleak as projected. However, there are undeniable challenges we must address," he told reporters at the Secretariat.
His remarks came as a 10-member IMF delegation is in Dhaka to review Bangladesh's economic progress under the ongoing loan programme.
The review is part of the preparation for the fourth tranche of funds. During discussions with government officials, the IMF noted that the economy is under pressure due to a range of factors, including political unrest, floods and contractionary policies.
The IMF has predicted that Bangladesh's growth rate could drop to 3.8% by the end of the year. It further highlighted slow economic activity and persistent inflationary pressures.
Capital outflows from banks have added strain to foreign exchange reserves, the delegation said. The IMF delegation head, Chris Papageorgiou, offered a brighter outlook for the next fiscal year.
He projected GDP growth to increase to 6.7%, with inflation falling to 5-6%, and emphasised the need for structural reforms, including tax reforms, strengthening the banking sector with a clear roadmap, and ensuring the central bank's independence.
About the Beximco Group 'bailout', Dr Ahmed justified the move, citing humanitarian grounds. "The funds were necessary to ensure workers received their wages. Wrongdoers must be punished, but workers should not suffer."
Looking ahead, Dr Ahmed assured that the 2025-26 budget would focus on protecting the poor from tax burdens. He criticised certain business practices, stating, "Entrepreneurs are constantly seeking loopholes. Those with Tk 500 million in business refuse to pay Tk 40 million in taxes. This must change."
Meanwhile, the IMF confirmed that Bangladesh would receive $645 million from the fourth tranche of its loan programme by the end of February, with an equal amount due in the fifth tranche.
Before disbursing the fifth tranche, another review is scheduled for March or April.
Messenger/JRTarek
