Economist Abu Ahmed questions rationale behind full compliance with IMF conditions
NN Online:
Renowned economist Professor Abu Ahmed has raised concerns over Bangladesh’s full compliance with all conditions set by the International Monetary Fund (IMF), arguing that such adherence does not necessarily lead to economic prosperity.
“If IMF prescriptions were flawless, countries like Pakistan, Nigeria, and Ghana would have become some of the wealthiest economies in the world,” he told UNB in a phone interview.
Professor Ahmed, who also serves as Director and Chairman of the Investment Corporation of Bangladesh, highlighted that Pakistan has approached the IMF for bailouts 24 times, yet continues to grapple with economic instability.
His remarks came in response to the ongoing unrest within the National Board of Revenue (NBR) regarding the proposed plan to split the organization into two separate entities.
Referring to the IMF’s recommendation to divide the NBR into the Revenue Management Division (RMD) and the Revenue Policy Division (RPD), Abu Ahmed termed it an “old prescription” and urged the government to carefully evaluate international practices before implementing such structural changes.
He emphasized that Bangladesh should not blindly follow every IMF condition, stating, “The government must make independent, well-informed decisions when accepting conditions from lending agencies.”
“Bangladesh’s economy is not in such dire condition that we need to accept all terms in desperation for funds,” he added.
Professor Ahmed also questioned whether Bangladesh truly lacks domestic expertise to assess such significant reforms. “Before moving forward with the NBR split, local experts must be consulted. Do we really lack qualified professionals in this area?” he asked.
Meanwhile, the NBR Reform Unity Council has announced a series of protest programmes demanding structural changes and accountability within the revenue board.
The council declared continued non-cooperation with the NBR Chairman and plans to submit a memorandum to the Chief Adviser on Thursday.
A complete strike in all offices under the Tax, Customs, and VAT departments—excluding the Customs House and LC Stations—has been announced for May 24 and 25. During those two days, work at Customs House and LC Stations will be suspended from 9 am to 5 pm, although export and international passenger services will be exempt.
From May 26, a full-scale strike will be observed in all Tax, Customs, and VAT offices, with international passenger services being the only exemption.