Bangladesh Bank governor for mobilising domestic resources for development activities

Bangladesh Bank (BB) Governor Dr Ahsan H Mansur today focused on mobilising domestic resources as global aid flows shrink and traditional donor priorities turn inward. 

"Bangladesh used to rely on foreign aid for 12 to 14 per cent of its budget back in 1972. Today, we've significantly reduced that dependency. I firmly believe that we must enhance our resource mobilisation capacity, which is perfectly achievable," he said at an event organised by Care Bangladesh at a hotel in the city, BSS reports. 

Mansur said some initiatives are being taken by the government, but there's resistance from within.

"For example, recently we have seen the fallout from a strike at the National Revenue Board, where officials essentially wanted to maintain the status quo," he added.

He said, "But the status quo is not an option. We have to break out of it and move towards higher revenue generation."

"If India can collect revenue 18-20 per cent of its GDP, if Nepal can exceed 20 per cent, then why should we be stuck at our current levels?" he added.

"These are questions we need to ask ourselves. It's certainly doable, and I'm not overly concerned about the financing gap," said Mansur.

"This isn't just about public funding. We must also harness the power of private capital, both domestic and international," he added.

He pointed to Bangladesh's untapped potential in global capital markets, suggesting sovereign bonds, private sector borrowing, and foreign direct investment as viable options to bridge the development financing gap.

"The world is moving on. Industrial countries are preoccupied with their problems. We must fend for ourselves, and East Asia has shown us that it can be done," he added.