Bangladesh to Present Realistic Budget Without ADB, IMF Aid: Adviser
Bangladesh will present a realistic and manageable budget for the upcoming fiscal year even if it does not receive budgetary support from the Asian Development Bank (ADB) or the International Monetary Fund (IMF), said Finance Adviser Dr. Salehuddin Ahmed.
He made the remarks on Sunday (May 4) following a meeting with ADB Vice President for South, Central, and West Asia, Mr. Yingming Yang, held at the Ministry of Finance in Dhaka.
"The ADB Vice President came to understand the current state of our economy. We informed him that the economy is doing better than before, with significant improvements in our macroeconomic indicators. We've also implemented notable reforms in the banking sector. One of our major areas of focus now is trade, and a summit on this issue will soon be held involving the private sector," said Dr. Ahmed.
He added that ADB appreciated Bangladesh’s recent investment summit and affirmed its continued support in infrastructure development. “They also proposed organizing a workshop in Dhaka to encourage private sector investment,” he noted.
Asked if the delay in IMF’s loan disbursement would affect ADB’s budget support, Dr. Ahmed responded, “While ADB takes IMF’s assessments into account for budget support, they mainly asked for details regarding our macroeconomic conditions. We're in discussions, and I’m hopeful the issues will be resolved.”
Responding to a query about ADB’s satisfaction with Bangladesh’s economic stability, he said, “ADB stated that, compared to other countries, Bangladesh's economy is performing well. They seemed pleased with our progress. We also briefed them on our efforts to prepare for LDC graduation.”
Dr. Ahmed emphasized that ADB is closely monitoring Bangladesh’s development and has committed to assisting with project financing, as well as reforms in the banking sector and the National Board of Revenue (NBR).
Replying to a query whether Bangladesh had proposed any short-term support measures from ADB, he said, “We've expressed confidence in securing budget support. ADB’s ‘soft lending window’ is gradually opening. We've requested support from their Ordinary Capital Resources (OCR) fund, but they mentioned it's limited — though they're reviewing the matter.”
He added that the government is working to increase tax revenue and expand the tax base to support the budget internally. “If the IMF imposes any unreasonable conditions tied to their support, we will evaluate those carefully. Our key focus is to reduce expenditures and improve efficiency. Even without IMF or ADB backing, we are determined to present the budget,” he concluded.
