Dhaka: Bangladesh Bank (BB) Governor Dr Ahsan H Mansur today emphasised the importance of mobilising domestic resources in light of diminishing global aid flows and shifting priorities among traditional donors.
According to Bangladesh Sangbad Sangstha, Dr Mansur highlighted the significant reduction in Bangladesh’s dependency on foreign aid, which used to constitute 12 to 14 percent of the national budget in 1972. Speaking at an event organised by Care Bangladesh at a city hotel, he asserted the need to enhance resource mobilisation capacity, describing it as a feasible goal.
Dr Mansur acknowledged some governmental initiatives aimed at improving resource mobilisation but noted internal resistance. He cited a recent strike at the National Revenue Board, where officials appeared intent on maintaining the status quo. He stressed that maintaining the current situation is not viable and underscored the necessity of moving towards increased revenue generation.
Drawing comparisons with neighboring countries, Dr Mansur questioned why Bangladesh should lag behind when countries like India and Nepal collect revenue amounting to 18-20 percent and over 20 percent of their GDP, respectively. He expressed confidence in the country’s ability to overcome these challenges and was not overly concerned about the financing gap.
The governor also underscored the importance of leveraging private capital, both domestic and international, to support development activities. He pointed to Bangladesh’s untapped potential in global capital markets and suggested options such as sovereign bonds, private sector borrowing, and foreign direct investment to bridge the development financing gap.
He concluded by observing that as industrial countries focus on their issues, Bangladesh must become self-reliant, citing East Asia as an example of successful self-sufficiency.