IMF, Development Partners to Support Bangladesh Based on Its Priorities: Rashed Al Mahmud Titumir

The International Monetary Fund (IMF), the World Bank and other development partners will provide support based on Bangladesh’s own priorities and reform strategy, said Dr Rashed Al Mahmud Titumir, the prime minister’s adviser on finance and planning.

He said international development partners are, for the first time, clearly expressing their willingness to support reforms based on Bangladesh’s priorities. This has created an opportunity for the country to advance reforms in line with its own plans.
He made the remarks while speaking to journalists in Bangkok on Thursday (October 15), on the sidelines of the annual meetings of the IMF and the World Bank.

Dr Titumir said that, besides the IMF and the World Bank, the Asian Development Bank (ADB), the Islamic Development Bank and other multilateral institutions, as well as relevant agencies from China and the United States, are also supporting reforms in line with Bangladesh’s priorities. In discussions with development partners, the country’s own strategy and priorities are receiving greater importance.
Asked whether conditions attached to IMF loans would pose an obstacle, he said the issues would proceed through the established process. The government is trying to implement each step quickly and effectively and remains optimistic about taking prompt and effective measures in this regard.

On the IMF’s growth and inflation forecasts, Dr. Titumir said the projections should also be considered from the perspective of the potential impact on the economy if reforms are not implemented. Differences among forecasts by international organisations are normal. A review of past data shows that the IMF’s growth projections tend to be somewhat conservative, he said.
He said the IMF’s Article IV mission report projected Bangladesh’s economic growth at 4.7 per cent. However, the government is optimistic about achieving its budgetary growth target of 6.5 per cent.
Dr Titumir said the government’s election manifesto had outlined its reform priorities. These priorities will also be reflected in the upcoming five-year economic strategy. The government believes that implementing the planned reforms will strengthen the economy’s capacity.
Regarding inflation, the adviser said several factors were contributing to it. The impact of the situation in the Middle East, along with persistent inflation inherited from the past, had made the current situation more complex. Reducing the cost of living for ordinary people and ensuring protection for vulnerable families are key government priorities, he said.
He said there had been various problems in selecting beneficiaries for social protection programmes in the past. Many people who should have been included were left off the lists, while others who were not eligible received benefits. The programmes were also operated separately, preventing them from delivering the expected results.
Dr Titumir said a World Bank report had highlighted rising poverty in recent years due to the lack of an effective social protection system. To address the situation, the government is introducing initiatives such as Family Cards and Farmers’ Cards. These initiatives are expected to enable the scientific selection of beneficiaries and ensure that assistance reaches those who genuinely need it.

He added that the government was emphasising the development of digital public infrastructure to make social protection programmes more effective. Development partners have also responded positively to the target of allocating 5 per cent of GDP to the social sector and plans to increase allocations for healthcare. Discussions have also covered expanding support in these areas in line with Bangladesh’s priorities.
Dr. Titumir said the government aims to raise tax revenue to 10 per cent of GDP by 2030. It is also prioritising restoring discipline in the banking sector, protecting depositors’ interests and ensuring accountability in the financial sector.

He said steps had been taken to return deposits to customers of Sammilito Islami Bank to ensure the security of depositors’ money. The government will also take initiatives to improve transparency in banks’ financial statements and balance sheets and reform the necessary legal framework.
Referring to past financial irregularities, the adviser said ordinary Bangladeshis were paying a heavy price for the plundering of money from banks and other sectors. According to him, around $40 billion had been looted from the banking sector. As the money belongs to the people, those involved in financial irregularities and plundering must be held accountable.

He said accountability must be ensured for those who looted money and those who helped them, wherever they are, at home or abroad. Non-performing loans and financial irregularities must be addressed through collective efforts. He believes that holding those who assist looters accountable would help reduce the likelihood of such crimes in the future.

The annual meetings of the IMF and the World Bank Group are being held in Bangkok, the capital of Thailand, from October 12 to 18. The meetings are discussing key issues, including the global economic situation, financial stability, poverty alleviation and inclusive growth.