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Finance Minister Amir Khosru Mahmud Chowdhury | Source: File photo / BSS
The government expects to finalise its discussions with the International Monetary Fund (IMF) by January next year, as it seeks a broader financing programme involving international development partners, Finance Minister Amir Khosru Mahmud Chowdhury said yesterday.
“Work is underway with the IMF. Working groups on both sides are working on it, and we hope to complete the process by January,” he told reporters at the National Board of Revenue (NBR) headquarters in Agargaon.
The minister said the government was not looking at the negotiations solely as a means of securing another loan but as part of a broader financing package.
“The issue is not just about a loan; it is a programme,” he said.
Bangladesh was working with the IMF, the World Bank, the Asian Development Bank and the Islamic Development Bank on the financing package, he said. The government was also exploring bilateral financing and bond issuances.
Asked whether the negotiations would result in a fresh IMF loan, Khosru said the programme would guide the government’s course of action in coordination with development partners.
“The working groups are working on the programme with the IMF, and it will be completed in due time,” he said.
The current BNP-led government decided in May to leave the existing IMF programme eight months before its scheduled expiry and pursue a fresh arrangement.
The programme, initially worth $4.7 billion, was signed by the previous Awami League government in January 2023 and later expanded to $5.5 billion under the interim government.
Bangladesh has so far received $3.8 billion in five instalments. The sixth tranche was held up after the IMF suspended discussions in November last year, opting to resume negotiations with the new government after the election.
On the revenue front, Khosru said income tax and customs collections had each grown by more than 14 percent, while VAT revenue was expanding at a slower pace.
He attributed the comparatively weak VAT growth partly to the recent introduction of a quarterly system, saying the corresponding figures had yet to be reflected in collection data.
He expected VAT receipts to improve in the coming quarters, helping the government meet its annual revenue target.
Asked about revenue shortfalls amid rising government expenditure, the minister said the government was assessing spending decisions based on their economic returns and potential to generate employment.
“Every taka of taxpayers’ money that we spend must generate value. It must have a return on investment and contribute to employment creation,” he said.
He said expenditure would be managed in line with revenue and that the government was weighing the economic benefits of every spending decision.
“The economy is moving in the right direction. We are on the right course,” he said.
On the proposed bifurcation of the NBR, Khosru said the government had already settled the decision and would provide it with a legal basis.
“Bifurcation is a settled matter. It can easily be given a legal shape,” he said.
Asked whether the proposal would be placed before parliament, he said, “Whatever is necessary will be done.”
Source: The Daily Star
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