It’s impossible to meet IMF targets: Finance minister

Finance Minister AHM Mustafa Kamal has said Bangladesh is comparatively in a better position in terms of foreign exchange reserves, but it is quite impossible to meet the targets set by the International Monetary Fund (IMF).

“Net or gross – Bangladesh is now in a better position in both terms. But we could not meet the IMF targets. It can never be possible to fulfill the IMF targets,” he said while speaking to the media at the secretariat on Tuesday.

The minister, however, said it is possible to double remittance. “The forex reserves have been maintained at $25-26 billion even in such a tumultuous situation. However, we, under no circumstances, would allow it to fall below the threshold of $30 billion this year. It is possible.”

He described the fixation of interest rates at banks as a right decision and said, “The rates could have surged to 22-24 per cent had it been left in the previous state. It could have finished the economy and the people here, but we did not let it happen.”

Regarding the rising interest rates, AHM Mustafa Kamal said, “It is true that the interest rates are rising. Why won’t it rise if the market can maintain it? However, when the interest rate was fixed, the small, medium, and even large institutions had no ability to pay a higher interest. When the amount of default loans surged, we kept it in check through the extension of the repayment period. We came to know about unusual transactions in some cases, but it will not persist.”

Asked about his plan if he is retained in the ministerial position in the next government, he said, “I do not know. Things will be clear after the oath. There are many undiscovered sectors in the economy; we need to untap them to advance further. Bangladesh has to go much further; it is possible.”

He stressed the formulation of proper policies to discover new sectors in the coming days.