BM Desk : The International Monetary Fund (IMF) has expressed satisfaction with Bangladesh’s economic stability, according to financial advisor Salehuddin Ahmed. The IMF’s primary goals are to lower the budget deficit, stable foreign exchange reserves, and raise the tax-to-GDP ratio.

He made this statement in response to inquiries from reporters following an IMF delegation meeting at the Secretariat on Sunday, April 6.

We are attempting to lower the VAT rate to a single rate, according to the financial advisor. Nevertheless, VAT cannot be lowered to a single rate all at once.

He said that the IMF will pay the money in two installments at once. They will now review. How will we increase the tax-GDP ratio, which is only 7 percent. Then how will we collect taxes. Tax administration should not leak.

He also said that the IMF’s concern is actually revenue generation, what will be our budget size, what will be the deficit, these have been discussed for now. I did not discuss the details with him, we will discuss with the NBR. We will discuss with Bangladesh Bank about loan resolution.

The financial advisor said, overall, we have had initial discussions with him about the discipline of the banking sector, recovery of defaulters’ loans, how to increase the NBR’s tax-GDP ratio, and in which cases we will increase these. They will sit with everyone.

In response to a question, he said, we are optimistic about receiving the fourth and fifth installments of the IMF loan. They said we will see. After they leave, I will go on April 19. Then there will be a meeting around May-June. Their recommendations are based on this review.

What is the IMF’s main focus in terms of the fourth and fifth installments of the loan? In response to a question from journalists, Salehuddin Ahmed said, increasing the tax-GDP ratio, stabilizing foreign exchange reserves a little more, then reducing the budget deficit, etc.

According to him, the economy of Bangladesh is currently active, somewhat stable, and headed in the right direction. However, following the review, they will see more. They expressed their satisfaction with the current stability of Bangladesh’s economy. However, they will examine the specifics.

He added, “I have stated quite openly that we are making every effort to fulfill our end of the bargain.” We’ve already demonstrated our excellent intentions. They ought to demonstrate sincere intentions. After that, we shall speak.