Dhaka:Prime Minister's Adviser on Finance and Planning, Prof Dr Rashed Al Mahmud Titumir, has stated that international development partners have shown confidence in the government's strategy to revive Bangladesh's economy, which was considered fragile due to the previous administration's policies.
According to Bangladesh Sangbad Sangstha, discussions with major financial bodies such as the World Bank, IMF, and the US Treasury Department have led to a consensus on the country's economic challenges and the government's approach. The consensus is based on three main points addressing weaknesses with transparency and accountability, tackling new inflationary pressures from the Middle East crisis, and implementing realistic recovery and reform programmes in banking and poverty reduction.
Titumir emphasized that the government is working transparently and accountably rather than ignoring issues. Negotiations are ongoing with various international financial institutions to secure funding for reform programmes, with progress expected in the next two to three months. Addressing inflation and supporting low-income citizens remain priorities, with measures like the Family Card and Farmers Card gaining international appreciation.
The government's reform agenda includes increasing the tax-to-GDP ratio without raising tax rates by expanding the tax net and enhancing administrative transparency. Additionally, reforms in the banking sector aim to reduce non-performing loans and strengthen banks' balance sheets. Monetary policy coordination and maintaining central bank independence are also key focuses, with a Tk 60,000 crore financing package aimed at boosting investment and employment.
Titumir highlighted that the reform agenda aligns with Bangladesh’s own needs and political commitments, as outlined in the government's election manifesto. He noted that the Middle East crisis has imposed additional economic pressures, particularly through rising fuel prices impacting transportation and production costs. However, financing programmes from international partners are helping mitigate these challenges.
The adviser expressed optimism that ongoing discussions with development partners would result in progress, aiding economic recovery, structural reforms, and social protection efforts.