According to the World Bank, Bangladesh’s macroeconomic circumstances are far better now than they were a year ago. This statement was delivered by World Bank Vice President for the South Asia Region Johannes Jutt on Sunday, July 13, following a meeting at the Secretariat with Financial Advisor Dr. Salehuddin Ahmed.
“The World Bank’s comment is that the macroeconomic situation of Bangladesh is presently extremely favorable,” the Financial Advisor told reporters following the meeting. “We were afraid that things would get really tough for us about a year ago,” he said. However, we now believe that we are headed in the correct way.
The Financial Advisor mentioned that in his new position, Johannes Jutt will now manage the World Bank’s operations in South Asia, with his office relocating to New Delhi from Washington. He noted that Johannes Jutt is familiar with the World Bank’s ongoing projects and budgetary support in Bangladesh.
Additionally, he stated that while Bangladesh was anticipated to encounter significant challenges about a year ago, the World Bank has shown satisfaction with the current overall economic conditions. Dr. Salehuddin Ahmed remarked that the Vice President of the World Bank recognized the improved state of the country’s financial sector, balance of payments, and foreign exchange sector. He also indicated that Johannes Jutt stressed the importance of private sector development and the need to attract more foreign direct investment (FDI).
The Financial Advisor pointed out that Johannes Jutt acknowledged that Bangladesh’s current economic situation is more favorable compared to other nations. Furthermore, he mentioned that Jutt positively reflected on the advancements in the country’s infrastructure development during his previous role as the World Bank Country Director in Bangladesh 10-12 years ago.
In response to a query, the Financial Advisor stated that the interim government has received all the support it requested from the World Bank. He added that the next phase of anticipated assistance will be discussed at the upcoming annual meeting of the World Bank-IMF Group next October.
In reply to another question, Dr. Salehuddin noted that the World Bank is pleased with the reform measures implemented in the financial sector, particularly concerning the National Board of Revenue (NBR). He mentioned that the restructuring of banks has commenced from Bangladesh Bank, and the World Bank is eager to see the complete execution of the decision to divide the NBR into two distinct organizations, although this process will require some time.
According to Salehuddin, the World Bank has agreed to offer support in the infrastructure sector, and talks have also taken place regarding container facilities at Chittagong Port and Laldia.When asked about the US tariff issue, the finance advisor stated that upon the return of the trade advisor and the leader of the negotiating team to the country, further information will be supplied.
Since Bangladesh gained its independence, the World Bank has been one of its main development partners, contributing over $46 billion in aid, the most of which has taken the form of grants.
