Government focusing on alternative financing reducing dependence on IMF-World Bank: Finance Minister

Amir Khasru Mahmud Chowdhury, Finance Minister, has said the government is focusing on alternative financing by reducing dependence on organisations like the International Monetary Fund (IMF) and the World Bank. He said there is a plan to form a two-billion-dollar fund for Bangladesh in Hong Kong and to issue Panda Bond and Samurai Bond in the international market.

The finance minister made these remarks at a seminar titled ‘Half-yearly economic situation of fiscal year 2026: Perspective of revenue and monetary policy and expectations of the private sector’ organised by the Dhaka Chamber of Commerce and Industry (DCCI) in Motijheel on Saturday (August 22).

Regarding the development of the capital market, Amir Khasru said competent and professional persons have been appointed to the Securities and Exchange Commission to restore investors’ confidence. Its positive impact is already being seen in the capital market.

The finance minister said the government will remain steadfast in the private sector-centric development philosophy to strengthen the country’s economy. At the same time, efforts are under way to build a sustainable economic system.

Emphasising increasing the confidence of local investors to improve the investment climate, he said foreign investment is also discouraged if the self-confidence of local investors does not increase. Initiatives are being taken to reduce regulatory rules to facilitate business. There is a plan to form a special committee and launch a website for this, where businessmen will be able to directly inform about their problems.

He also said initiatives are being taken to reduce the cost of business by fixing a specific timeframe for clearance of goods at customs and ports.

Regarding the energy crisis, the finance minister said the long-standing problems of the energy sector cannot be solved overnight. The government is moving forward with short- and long-term plans. Currently it has been possible to increase fuel stock for one month and the target is to raise it to three months. Discussions are under way on multiple floating LNG terminals to address the gas crisis. At the same time, work has also started to increase the stock of own gas.

Regarding reforms in the banking sector, he said there will be no political interference or appointment on political consideration in the banking sector. Bangladesh Bank has announced a special package and a policy for easy exit from loans for those who are not wilful defaulters but have fallen into problems due to the situation.

Highlighting the need to increase the tax-GDP ratio, the finance minister said work is progressing rapidly to introduce a fully automated system in all government services to reduce corruption and increase transparency. A timeframe has also been set for the concerned authorities in this regard.

At the seminar, DCCI President Taskin Ahmed said although loan growth in the public sector is 25.9 per cent, loan flow in the private sector is only 5 per cent. This slow pace of private loans amid high inflation is worrying for investment. He emphasised ensuring uninterrupted services in industrial areas, reducing export time and strengthening the capital market by reducing bank dependence.

He said actual loan flow in the small, cottage and medium industry sector is less than the target. The rate of defaulted loans in this sector has also increased due to rising costs of doing business. He proposed arrangement for digital method of lending alongside collateral-based loans and formation of a special fund for purchasing affordable machinery.

At the seminar, economists and business representatives highlighted high interest rates, defaulted loans, energy crisis, weak logistics system, stagnation in investment and policy uncertainty as major obstacles for the private sector. They said investment will not increase only by reducing the interest rate; at the same time energy, infrastructure and a business-friendly environment must be ensured.