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DHAKA: Rashed Al Mahmud Titumir, Adviser to the Prime Minister on the Ministries of Finance and Planning, has said that Bangladesh currently spends around $4.5 billion annually on foreign debt repayments. By 2030, the amount could rise to approximately $7.5 billion.
Speaking to reporters after a meeting of the Revenue Affairs Committee at the Revenue Building in Agargaon on Tuesday, Titumir highlighted two major challenges facing the country: low tax revenue relative to GDP and a growing foreign debt burden.
He said Bangladesh’s foreign debt burden had increased by 300 percent over the past decade.
GDP Growth Could Reach 6.5%
Titumir expressed optimism that Bangladesh’s GDP growth could reach 6.5 percent in the current fiscal year.
He noted that the International Monetary Fund (IMF) had warned that economic growth could slow without reforms. However, he said the government was moving forward with various reform initiatives.
A committee formed to review reforms at the National Board of Revenue (NBR) has submitted its report, recommending the separation of tax policy and tax administration functions.
Meanwhile, development partners have projected lower growth rates for Bangladesh: IMF: 3.2 percent, World Bank: 3.6 percent, Asian Development Bank (ADB): 4 percent
Regular Publication of Revenue Collection Data
Responding to questions about the NBR’s failure to publish revenue collection figures for the first three months of the current fiscal year, Titumir said the data would be published regularly from December.
He also expressed optimism that revenue collection would gradually increase.
IMF Loan Conditions Under Discussion
Asked about the conditions attached to the IMF loan, Titumir said a technical committee was currently discussing the issues.
He added that discussions at the policymaking level would take place once an IMF mission visits Bangladesh.