The IMF has pledged to continue its assistance
The International Monetary Fund (IMF) will work closely with relevant authorities to implement Bangladesh’s reform agenda. Apart from this, to deal with the current challenges of the economy, Bangladesh has brought several policy adjustments, including contractionary monetary policy and rationalization of the government’s main expenditure, which is supported by the international lending organization.
An IMF delegation visited Dhaka on September 24 to discuss the recent development and reform priorities of the interim government. The team, led by Chris Papageorgiou, announced this support in a statement issued at the end of their tour on Monday. It is said that the timely formation of the interim government has helped to stabilize the political and security situation in the country, resulting in a gradual return to normalcy in the economy. However, economic activity has slowed significantly recently due to instability and major floods. Again, the inflation rate remains in the 2-digit range. A deterioration in the balance of payments puts additional pressure on foreign exchange reserves. As a result, revenue collection has decreased, while (government) expenditure pressure has increased. (Massive) internal arrears have also accumulated. This has made the weakness of the financial sector more visible.
The statement also said that IMF officials had open and fruitful discussions with Bangladeshi authorities on necessary policies and reforms to address these challenges. We will support the authorities’ efforts on policy coordination, including contractionary monetary policy and rationalization of government core spending. Under the IMF loan program, we will work closely with the authorities to advance Bangladesh’s reform agenda. The agendas aim to stabilize macroeconomics, promote job creation, strengthen institutions and promote strong, sustainable and equitable growth.
Credit: dainikamadershomoy
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