Discussions with IMF on additional money for fuel imports held: Finance Minister

Finance Minister Amir Khosru Mahmud Chowdhury said that discussions have also been held with the IMF regarding the additional money needed for fuel imports and there will be detailed discussions at the organisation's spring meeting in Washington.

The Finance Minister gave this information in response to questions from reporters after a meeting with IMF Director for Asia and Pacific Krishna Srinivasan, who visited the Secretariat on Tuesday.

The organisation's board meeting will hold a final discussion in April on receiving the next installment of $1.3 billion from the IMF. 

In view of that, the Finance Minister hopes that the loan installment can be received in July.

The minister also said that discussions have been held regarding the IMF's loan waiver. 

“The $1.3 billion installment waiver will be reviewed in July. In the meantime, we will prepare the budget. There is a spring meeting in Washington in April, where this issue will be discussed,” he added.

Amir Khosru said that discussions have also been held with the IMF regarding the additional money needed for fuel imports and there will be detailed discussions at the organization's spring meeting in Washington.

He said, “We have been running a programme with the IMF for several years. The programme will be revisited again, there is no problem in that. The IMF's requirements are being discussed.”

He said, “All the IMF conditions cannot be met right away. We will have to implement as much as is possible now and those that are not possible now in the current economic context of Bangladesh, we will have to implement them gradually because, from where the economy stands, we have to do everything in our own way.”

Krishna Srinivasan, Director of the Asia and Pacific Department, told reporters that various issues including the loan programme have been discussed with the Prime Minister and the Finance Minister and further discussions will be held. 

The ongoing loan programme with Bangladesh will be reviewed, he added.

He also said, due to the ongoing war between the United States and Israel with Iran, there has been uncertainty in the economies of all countries in the world, and there is a similar uncertainty in the case of Bangladesh.

The Finance Minister said, “When I took office, I found the economy and banking sector in a very bad condition. We discussed the things mentioned in the BNP election manifesto to overcome this crisis. To overcome this crisis, we need many reforms, many deregulations.”

He said, “The banking sector is in a very bad condition, the stock market is in a very bad condition. The tax-GDP ratio is very low. It is possible to eliminate these by implementing the manifesto and we are taking one step after another. We have already started working to expand the coverage of the social safety net, various steps have been taken including family cards, agricultural loan waivers.”

The minister said, “Many development projects have stalled during the interim government. They need to be activated again. For this, to achieve financial capacity, the economy needs to be taken to a place through reforms.”

“The challenges of war, the banking sector, the capital market were discussed; we are at a very low level in tax-GDP. This is a matter of improvement,” he continued.

Calling on the countrymen to be compassionate and restrained at the moment of energy crisis due to the Iran war, the minister said, “The current government took charge a month ago. In the meantime, Ramadan has passed, the war has begun. Despite the energy crisis due to the war, there has been no problem in the country's transportation. Everyone has been able to go home; the transport rent has not increased. There has been no unrest in the garment industry. No transportation has been stopped due to lack of oil.”

The finance minister went on saying, “The government cannot handle this crisis alone, the countrymen have to be compassionate, they have to move towards restraint.”