Finance Minister Amir Khasru Mahmud Chowdhury on Monday said that the International Monetary Fund (IMF) maintains a positive stance toward the government’s financial sector reform programs and political responsibility.
He noted that fruitful discussions were held with the IMF regarding the foundation, sequencing of implementation, and policy framework of a new program for Bangladesh, adding that the IMF has agreed to the proposed policy framework.
The minister made these remarks to journalists at the Secretariat on Monday, following a meeting with an IMF delegation led by Ivo Krznar, mission chief for Bangladesh and Hong Kong.
He mentioned that the foundation upon which the new program will operate was clearly presented to the IMF.
Both sides agreed on the principle of implementing reform activities step-by-step, keeping the country’s economic realities in mind. He emphasized that major changes cannot be brought about overnight, a reality that the IMF also recognizes.
The finance minister stated that considering the overall economic situation of the country, which reform will be implemented and when will be determined on a priority basis. The IMF has supported this step-by-step strategy for reform implementation.
Concurrently, the IMF has given significant consideration to a political government's accountability toward its people and its public welfare responsibilities. Economic decisions will be made while keeping the interests of the public intact, he added.
Amir Khasru Mahmud Chowdhury said that the IMF praised the visible progress made in financial sector reforms, stock and capital market development, and revenue collection during the current government’s four-month tenure.
They particularly viewed the significant success in tax collection achieved within a short span of time as a positive development. Following this momentum, positive discussions were also held on various government proposals to increase the tax-to-GDP ratio.
In response to a question regarding subsidies, the finance minister explained that discussions at this stage did not focus on any specific conditions or sector-based decisions. The talks primarily centered around the policy foundation and structure of the new program.
Detailed discussions on subsidies and other matters will be considered in the next phase.
He further informed that discussions with the IMF are an ongoing process. More talks on the matter will take place during the annual meetings of the World Bank and IMF next September or October.
The IMF has expressed satisfaction with the progress of the current government's reform activities, and the process of finalizing the new program for Bangladesh will move forward based on that foundation.
