An International Monetary Fund (IMF) economic appraisal mission noted concerns about Bangladesh's low tax-GDP ratio, non-performing loans (NPL) building up in the banking system and rising inequality.
The team also had a critical appreciation of low FDI inflow, high out-of-pocket expenditure in health, low state spending on health and education, and inadequate skill development of youths, officials said.
The views were expressed when the IMF delegation, headed by its chief at Asia and Pacific Department Rahul Anand, met State Minister for Planning Shamsul Alam at his office in Dhaka on Wednesday.
With the state minister the delegation exchanged views on the outlook and prospect of Bangladesh economy, in the wake of global economic and financial crises that are bringing many countries on the brink.
On the government side, Alam explained the measures taken to address different impacts on the economy.
'He also sought support from the IMF for accelerating the growth momentum by taming down the higher inflationary pressure, which affected the poor most,' said one official after the meeting.
The state minister apprised the team about government steps to manage the Covid-19 impact, inflationary pressures driven by growing import cost, keep remittance and foreign-exchange reserves stable, ensure social protection and deal with the dollar crisis.
He also emphasized the necessity of implementing big infrastructure projects for keeping higher growth momentum in the national economy and for the rural economic transformation.
The IMF team started its visit to Bangladesh on July 12 to review the country's present economic condition before offering a loan.
The IMF team said that Bangladesh is eligible to get $6.8 billion worth of loans over next few years 'if the country needed it.
They usually provide loans to minimize the gap in the balance of payments of its member-countries.
'Discourage foreign-funded projects without economic returns'
The IMF also suggested that Bangladesh should be more cautious in taking up projects with foreign loans that will not bring economic benefits.
The visiting IMF delegation made the suggestion at a meeting with officials at the Economic Relations Division (ERD) on Wednesday considering the volatility in the global economy.
ERD officials said the global lender has appreciated Bangladesh's external debt management.
Currently, the country's outstanding foreign debt is $50 billion and there is another nearly $50 billion in the pipeline.
The Washington-based lender said there is nothing to fear in the prevailing global situation.
The current debt liability of 14.33% of GDP is in a comfortable place, but it may change owing to the global situation, added the officials.
