IMF satisfied with reforms, wants inflation to fall at faster pace: Finance adviser

Finance Adviser Dr Salehuddin Ahmed on Tuesday said the International Monetary Fund (IMF) has expressed satisfaction with Bangladesh's progress in implementing reforms but urged the government to accelerate policy execution.

"The IMF said our overall performance is good, but they also highlighted the challenges," Dr Ahmed told reporters at the end of two separate meetings of the Advisers Council Committee on Economic Affairs and Government Procurement at the Secretariat in Dhaka.

He said the government has set a target to bring down inflation to 7.0 per cent by June. "But the IMF wants inflation to fall faster. I am cautious about a sudden increase in the policy rate; we also need to ensure supply-side stability."

The finance adviser said the IMF also discussed the banking sector, particularly the nationalisation of five ailing private banks. "You have taken over five banks. That's a big challenge."

Regarding reforms at the National Board of Revenue (NBR), he said the IMF is satisfied with the progress made.

Asked if the IMF had proposed any new conditions, the adviser said no. "Basically, it was like an Article IV consultation. They are happy with what we have achieved overall," he said.

Body Camera Procurement

On the procurement of body cameras for police ahead of the upcoming national elections, Dr Ahmed said the number may be reduced from the previous plan of purchasing around 40,000 units.

"The final number of cameras will be reduced, but it has not been fixed yet. We have asked the authority to come back after further review, with prices and procurement details. We want transparency in the process," he said.

He added, "Now it will be done in a rational, not ambitious, way. The body cameras will be deployed in sensitive areas, not everywhere."

Dr Ahmed also said the advisory committee agreed in principle to purchase weapons for Ansar, VDP personnel.

However, he refrained from commenting on whether general shareholders of the five ailing banks would receive any return on their investments. "Ask the central bank," he told reporters.

syful-islam@outlook.com