By UNB, Dhaka
Bangladesh is hopeful of securing the fourth and fifth tranches of the International Monetary Fund (IMF) loan, said Finance Adviser Dr Salehuddin Ahmed.
Talking to reporters after a meeting with the visiting IMF delegation in Dhaka on Sunday, Dr Ahmed said the IMF has acknowledged Bangladesh’s economy to be on the right track.
“Our discussions with the IMF primarily centred around the country’s tax system. Bangladesh’s tax-to-GDP ratio stands at only 7 percent and the IMF has emphasised the need for increasing it. There was also significant discussion regarding administrative measures within the revenue sector. The IMF is seeking further clarity on the upcoming national budget and the projected fiscal deficit,” he said.
Following the meeting with the Ministry of Finance, the IMF is expected to hold in-depth discussions with the National Board of Revenue (NBR) on tax-related matters, the adviser said.
Apart from the tax structure, he said, the IMF had also initiated preliminary talks on the banking sector. “The IMF enquired about the steps Bangladesh has taken to restore discipline in the banking sector, particularly concerning the recovery of defaulted loans. We informed them that a new legal framework is being developed to facilitate loan recovery. The IMF will discuss the matter further with Bangladesh Bank.”
The IMF delegation, currently in Dhaka, will continue discussions with various financial institutions over a two-week period starting from 6 April.
After the conclusion of these talks, a decision regarding the disbursement of the remaining $2.39 billion is expected around May or June, Dr Ahmed told the journalists.
