Funding from the World Bank, IMF and United States is not in doubt, Prime Minister’s Finance Advisor Rashed Al Mahmud Titumir has said.
Development partners understand the economic challenges Bangladesh inherited, he said after meeting US Treasury officials on the sidelines of the IMF and World Bank annual meetings in Bangkok on Wednesday.
“Many people think there is some kind of uncertainty. There is nothing of the sort,” Titumir said.
He said development partners agreed that Bangladesh’s current economic problems were inherited from the previous administration.
“Whether it is the World Bank, the treasuries of different countries or multilateral institutions, they all point out that today’s problems are those we inherited,” he said.
Bangladesh is negotiating a $4.5 billion loan from the IMF and has sought an additional $10 billion from the World Bank over three years, beyond its regular assistance.
The delegation led by the finance minister is also pursuing investment from other countries.
Asked about reforms sought by development partners, Titumir said the government had outlined its plans in its election manifesto.
He highlighted efforts to make the tax system more transparent and efficient without raising rates, digitise tax administration and reduce harassment of taxpayers.
Digitalisation was already producing positive results in revenue collection, he said.
Restoring discipline in the banking sector was another priority.
Customers of Islamic banks were receiving their deposits, and the government had dropped a proposal to deduct part of their money during repayment, he said.
The government is also working to reduce non-performing loans and address weaknesses in banks’ balance sheets.
Bangladesh Bank has estimated that $40 billion is needed to tackle problems created in the banking sector under the previous government, Titumir said.
He added that the government had presented development partners with plans for economic recovery, institutional reform and faster prosperity, claiming they had agreed with the initiatives.