A delegation of the International Monetary Fund (IMF) visited Dhaka with various government agencies and organizations from the 6th to the 5th of this month. The IMF Mission has not made a final decision on the fourth and fifth installment of the US $ 1 million loan program, despite a long discussion on various sectors of the bank, the revenue system and the economy. As a result, the donor agency increased to Bangladesh to get these two installments of loan. Now Bangladesh's eyes at the IMF's Spring Meeting in Washington to discount the loan installment. This is where the future of this loan program will be determined.
After the visit of the IMF mission to Dhaka, the chief of the delegation, Chris Paparjarjiu's commentary, is concerned about the country's economic situation. GDP growth in Bangladesh has declined alarmingly, which has emerged as the main reason for political uncertainty and stagnation in investment. Although inflation is somewhat reduced, it is still out of control. In this context, the company says the policy should be further enhanced, so that the economy's balance is possible.
Bangladesh's economy is under deep pressure on political unrest, high inflation and foreign money deficit burden. In such a reality, the IMF has given a variety of warnings on the economy of Bangladesh. He has also given some suggestions to determine what to do. As a result, both sides are hoping that within the upcoming spring meeting in Washington, an agreement on the rest of the loan program will be reached.
On the one hand, huge tax discounts, weaknesses in tax collection on the other – the revenue collection falls into the trap of these two is at risk of the country's macro -economy for a long time. In this situation the IMF directly said the tax system should be poured. The company says that if a transparent, fair and straightforward tax structure is not created, the government will not be able to reach the desired level in social expenses and infrastructure investment.
The government is struggling to meet the cost of importing and maintaining economic status due to the decrease in the reserve. The IMF mission has suggested that more flexibility to exchange the price competition and increase the reserve.
ব্যাংক খাত সংস্কারে তাগিদ
The IMF's speech also has the weakness of the banking sector. The IMF mission has expressed concern over these issues, especially deficient loans, poor monitoring and transparency in policy making. The company has emphasized on increasing the independence and effectiveness of Bangladesh Bank, so that the policy decisions can be implemented from political influence.
Pledge
Although the government has already indicated some reforms, the pace of implementation remains in question. The IMF says, not just the plan, they have to have determination and continuity in implementing them. In particular, it is important to ensure sustainable investment in the economic preparation and infrastructure sector, especially to tackle the risk of climate change.
Shadow
The IMF has identified the recent 'mass movement' as a major cause of economic decline, though they did not analyze it from a political point of view. However, it is clear, if political uncertainty prolongs, economic reform activities will be hampered. As a result, the agreement in the spring meeting is in doubt about how real it will get.
