Bangladesh in talks with WB, IMF for $4.5b budget support
Kamruzzaman Bablu from Washington DC :
Aiming to boost economic development and expedite reform activities, Bangladesh is expected to seek $4.5 billion in budget-support credits from the World Bank and the International Monetary Fund (IMF).
The Bangladesh delegation, led by Finance Adviser Dr. Salehuddin Ahmed, announced this at a press conference held at the office of the Alternate Executive Director (AED) for Bangladesh, Bhutan, India, and Sri Lanka at the World Bank Group in Washington, DC, on Tuesday.
Dr. Salehuddin stated that the new government has initiated several steps in the economic sector, including various reforms in the banking sector and particularly in trade. Despite numerous crises and challenges, international organizations remain optimistic about Bangladesh’s economic prospects, he said.
“We have met and held discussions with representatives from various multinational organizations, including the IMF. We also participated in the V20 meeting, which was attended by finance ministers from around the world,” he added.
“We discussed with the ADB and ITFC, and Bangladesh is also set to seek further budget-support credits from the World Bank. Additionally, we plan to engage with USAID,” Mr. Uddin stated.
He emphasized the need for support from multiple lenders, both financial and technical, to aid in Bangladesh’s economic development. Key issues like improving money transfer systems, recovering laundered funds, and revitalizing private-sector trade will be prioritized under these initiatives.
The international organizations have assured the current government of providing the necessary funds to bolster various financial sectors, Dr. Salehuddin mentioned. He highlighted the positive feedback received on Bangladesh’s economic issues, saying, “We are getting favorable responses from all quarters, in terms of both financial and technical support. The ultimate goal is to ensure social development alongside the country’s overall progress.”
This annual meeting holds special importance for Bangladesh, especially given the recent political changes. To restore confidence in international organizations, policymakers from Bangladesh’s financial sector engaged in discussions with multiple parties.
Despite acknowledging the previous government’s instances of corruption and mismanagement, Dr. Salehuddin praised the developmental activities undertaken during that time at the press conference during the World Bank and IMF meetings.
Also present at the press conference were Bangladesh Bank Governor Dr. Ahsan H Mansur, Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky, Finance Division Secretary Khairuzzaman Mozumder, and Lutfey Siddiqui, the Chief Adviser’s special envoy on international affairs.
When asked about Bangladesh’s overall progress, Dr. Salehuddin commented, “There has been consistent improvement in Bangladesh, though political complications and challenges have arisen at times. However, Bangladesh has continued to develop steadily, especially since the 1990s. No single government can be solely credited or blamed.”
He further explained that those attending the meeting confirmed Bangladesh’s strong economic performance. “We have achieved the MDGs and are on the path to becoming a middle-income country. That’s why I emphasized the need for continuity,” he said.
In response to another question, the Finance and Commerce Secretary added, “We are receiving positive feedback from all sides. However, we must also consider the repayment terms and their sustainability.”
On the second day of the annual meeting, the IMF published its World Economic Outlook report, forecasting that Bangladesh’s economic growth may reach 4.5% this year. Despite various challenges, the financial adviser expressed optimism about Bangladesh’s growth prospects.
The Bangladesh delegation is also expected to hold talks with officials from the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA), the International Finance Corporation (IFC), and the US Treasury Department.
Earlier, MIGA offered Bangladesh Bank a $1 billion guarantee facility to support international trade and reduce import costs.