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Bangladesh will seek support from the International Monetary Fund (IMF), the World Bank and other development partners in line with its own priorities and reform strategy, Prime Minister’s Adviser on Finance and Planning Dr Rashed Al Mahmud Titumir has said.
The government is optimistic about achieving its economic growth target by strengthening the economy through planned reforms, he said.
Titumir made the remarks while speaking to journalists on Thursday on the sidelines of the annual meetings of the IMF and World Bank Group in Bangkok, Thailand.
The annual meetings, being held from October 12 to 18, are discussing key issues including the global economic outlook, financial stability, poverty reduction and inclusive growth.
Titumir said differences in economic forecasts by international organisations were normal, adding that the IMF’s growth projections had generally been somewhat conservative in the past. He said assessments of the economic outlook should also consider the potential impact of failing to implement reforms.
Referring to the IMF’s Article IV mission report, which projected Bangladesh’s economic growth at 4.7 per cent, he said the government had set a growth target of 6.5 per cent in the budget and remained optimistic about achieving it.
He said reforms announced in the election manifesto could strengthen the economy if implemented and incorporated into the country’s subsequent five-year economic strategy.
Responding to questions about conditions attached to IMF lending, Titumir said the government would follow the established process while trying to implement the necessary measures quickly and effectively.
He said discussions on Bangladesh’s reform agenda were also taking place with the Asian Development Bank, the Islamic Development Bank and other multilateral institutions, as well as relevant institutions in China and the United States. Bangladesh’s own development strategy and priorities would guide these discussions, he added.
On inflation, Titumir said several factors were contributing to the current situation, including developments in the Middle East and persistent inflation inherited from previous years.
Reducing living costs and protecting vulnerable households were among the government’s key priorities, he said.
He acknowledged shortcomings in previous social protection programmes, saying some eligible people had been excluded while others who did not qualify had received benefits. Fragmented implementation had also limited their effectiveness.
Referring to a World Bank report highlighting rising poverty amid weaknesses in social protection, Titumir said the government was pursuing initiatives such as Family Cards and Farmers’ Cards to identify eligible beneficiaries through scientific methods and ensure assistance reached those who needed it.
He also stressed the need to develop digital public infrastructure to improve social protection delivery. Development partners had responded positively to plans to allocate 5 per cent of GDP to the social sector and increase health spending, he said.
Titumir said the government aimed to raise tax revenue to 10 per cent of GDP by 2030. Restoring discipline in the banking sector, protecting depositors and ensuring accountability across the financial sector were also priorities.
He said steps were being taken to return deposits to customers of Sammilito Islami Bank. The government also planned to improve transparency in banks’ financial statements and balance sheets and reform the necessary legal framework.
Titumir said ordinary people were bearing a heavy cost because of large-scale financial irregularities and alleged embezzlement across different sectors.
He claimed that around $40 billion had been looted from the banking sector, stressing that the money belonged to the people and those responsible must be held accountable.
He said accountability should extend to both those who misappropriated the money and those who assisted them, regardless of whether they were in Bangladesh or abroad.
Concerted efforts were needed to address non-performing loans and financial irregularities, he said, adding that holding those involved and their accomplices accountable could help prevent similar crimes in the future.
