Govt seeks WB-IMF support for reform & development

Adviser of the interim government on the Ministries of Finance and Commerce Dr Salehuddin Ahmed today said the government has sought support from the World Bank, alongside other development partners like IMF for some ongoing and future programmes and schemes.

The Adviser was talking to reporters after a delegation of the World Bank and International Finance Corporation (IFC) met him at the Finance Division Conference Room at Bangladesh Secretariat today. Asked what kind of support the government has sought from the lending agencies, Dr Salehuddin said, “We have requested them for providing support in some ongoing and future programs. “We will formally convey them about our needs later and talks will be held further”.  

He said the government sought technical assistance for banking sector reforms, bringing back the laundered money from abroad and reform the tax regime. The Adviser said the government has sought support not only from IMF, but also from other development partners.

He said after coordinating with the other development partners, the government would communicate with the IMF for availing the specific support. “We will not make any duplication while seeking support from the development partners,” he added. The Finance Adviser said the government needs resources for carrying out reforms in the economic fronts and other areas.

“In this regard, we will collect local resources as much as we can. But, in some cases, we need funding from the foreign sources like IMF which provides us balance of support and in the revenue sectors alongside in the banking sector.”

Regarding today’s meeting with the World Bank and IFC delegation, he said talks with them were held on possible support in various sectors. Discussion was also held on the issues of broad economic objectives and policy perspectives.

“This was not a technical team …we have told them that we have taken necessary steps to carry out reforms in the banking, revenue and other sectors which would take some time,” he added. The Adviser said, the World Bank team would specifically talk with Bangladesh Bank on foreign exchange market issue, banking sector reforms, and macroeconomic policy. They would also discuss with NBR on reform issues.

The Adviser said, they would also hold talks with the policy makers of the lending agencies in the upcoming Annual Meetings of the IMF and World Bank Group in October. World Bank regional vice president for South Asia Martin Raiser, South Asia Regional Director Imdad Fakhoury, World Bank Country Director Abdoulaye Seck and World Bank Operations Manager for Bangladesh Gayle Martin were present, among others.

Meanwhile, World Bank (WB) Group President Ajay Banga recently said the global lender would provide US$ 3.5 billion to support reform initiatives of Bangladesh’s interim government. The WB president announced the assistance at a meeting with Bangladesh Chief Adviser Professor Muhammad Yunus on the sidelines of the United Nations General Assembly (UNGA) at the UN Headquarters. Banga, a long-time friend of Prof Yunus, said at least US$ two billion would be provided as fresh lending while another US$ 1.5 billion would be repurposed from the existing programs.