Dhaka: Bangladesh’s macroeconomic condition has been positively evaluated by the World Bank, highlighting a significant improvement compared to nearly a year ago. This assessment was shared by Johannes Zutt, World Bank Vice President for the South Asia region, during a meeting with Finance Adviser Dr. Salehuddin Ahmed at the Bangladesh Secretariat.
According to Bangladesh Sangbad Sangstha, the Finance Adviser informed reporters after the meeting that the World Bank had commented on the favorable state of Bangladesh’s macroeconomic situation. Dr. Salehuddin expressed that the challenges anticipated a year ago have been effectively managed, steering the country on the right track. Zutt, in his new capacity, will oversee the World Bank’s operations in South Asia from New Delhi instead of Washington DC, aligning with the bank’s restructured decisions.
The Finance Adviser highlighted that Zutt is knowledgeable about the World Bank’s ongoing initiatives in Bangladesh, encompassing various projects and budgetary support. The delegation from the World Bank conveyed their satisfaction with the country’s current macroeconomic conditions, noting that previous concerns about potential challenges have been mitigated.
Dr. Salehuddin Ahmed shared that the World Bank Vice President recognized the improved conditions in Bangladesh’s financial sector, balance of payments, and foreign exchange realm. He emphasized the importance of private sector growth and attracting more foreign direct investment (FDI), as suggested by Zutt.
Johannes Zutt, reflecting on his previous role as the World Bank country director in Bangladesh, acknowledged the substantial progress in the development of physical infrastructures over the past decade. Discussions during the meeting also covered the operations of the International Finance Corporation (IFC).
Addressing queries, the Finance Adviser mentioned that the interim government has received the support it sought from the World Bank. Future support discussions are slated for the upcoming Annual Meetings of the World Bank-IMF Group in October. Dr. Salehuddin also noted the World Bank’s approval of financial sector reforms, including the restructuring of the National Board of Revenue (NBR) into two entities, a process that is underway.
The meeting also touched upon infrastructure projects like the Chattogram Port and the container terminal at Laldia, with the World Bank agreeing to provide support. On the subject of the US tariff issue, the Finance Adviser deferred details until the Commerce Adviser and negotiation team leader return to provide updates.
Johannes Zutt, recently appointed as the World Bank’s Vice President for the South Asia Region, arrived in Dhaka yesterday. The World Bank has been a crucial development partner for Bangladesh since its independence, committing approximately $46 billion in grants and concessional credits to date.