Finance adviser downplays IMF concerns, cites challenges ahead
Staff Reporter :
Despite the economic challenges facing the country, the situation is not as dire as suggested by the International Monetary Fund (IMF), stated Finance Adviser Dr. Salehuddin Ahmed on Thursday.
“The IMF has raised several concerns, but the economy is not as grim as portrayed. However, there are undeniable challenges that we need to address,” he told reporters at the Secretariat in Dhaka.
His comments followed a visit by a 10-member IMF delegation to Dhaka to assess Bangladesh’s economic performance under the ongoing loan programme. The review is part of preparations for the disbursement of the fourth tranche of funds.
During discussions with government officials, the IMF highlighted the strain on the economy due to factors such as political unrest, floods, and contractionary policies.
The IMF projected that Bangladesh’s growth rate could fall to 3.8 per cent by the end of the year, citing slow economic activity and persistent inflationary pressures.
The delegation also noted that capital outflows from banks have intensified pressure on foreign exchange reserves.
However, IMF delegation head Chris Papageorgiou expressed optimism for the next fiscal year, predicting GDP growth to rebound to 6.7 per cent and inflation to ease to 5-6 per cent.
He emphasised the importance of structural reforms, including tax reforms, strengthening the banking sector with a clear roadmap, and ensuring the central bank’s independence.
Regarding the controversial Beximco Group ‘bailout,’ Dr. Ahmed defended the decision, citing humanitarian considerations.
“The funds were essential to ensure workers received their wages. Wrongdoers should face consequences, but workers must not bear the brunt,” he stated.
Looking ahead, Dr. Ahmed assured that the 2025-26 budget would prioritise protecting the poor from excessive tax burdens.
He also criticised certain business practices, saying, “Entrepreneurs are always looking for loopholes. Businesses with Tk 500 million in earnings 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 the loan programme by the end of February, with a similar amount expected in the fifth tranche.
A subsequent review, scheduled for March or April, will determine the disbursement of the fifth tranche.