IMF advises Bangladesh to lay emphasis on three issues

A participant stands near a logo of IMF at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, 12 October 2018.Reuters file photo

The International Monetary Fund (IMF) has advised Bangladesh to lay emphasis on three key issues – raising tax revenues and rationalising non-priority expenditure; modernising the monetary policy framework and improving policy transmission; and strengthening banking regulation, supervision, and governance.

Rahul Anand, IMF mission chief for Bangladesh, came up with the advice at a virtual press briefing on Friday. He responded to different queries regarding the financial situation in Bangladesh and way-outs.

The recommendations came following the disbursement of $690 million in the second tranche of the global lender's $4.7 billion loan to Bangladesh. The IMF’s Asia and Pacific chapter hosted the briefing marking the disbursal.

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At the briefing, the IMF lauded the government’s efforts to combat the macro-economic challenges.

Noting the strict monetary policy and flexible currency exchange rate, the IMF said the overall efforts of Bangladesh are satisfactory and it fulfilled most of the targets and and reform promises outlined in the IMF loan scheme.

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Rahul Anand particularly encouraged deepening of capital markets to help mobilise private financing to support growth objectives.

Asked about the political situation in Bangladesh, the IMF official said his organisation does not make any comment on such issues.