We will present realistic budget even without ADB-IMF support: Finance Adviser

Finance Adviser Dr Salehuddin Ahmed stated that Bangladesh is capable of presenting a realistic and manageable budget even without financial support from the Asian Development Bank (ADB) and the International Monetary Fund (IMF).

Dr Salehuddin made the comment on Sunday (May 4) while speaking to reporters at the Ministry of Finance following a meeting with Yingming Yang, ADB Vice President for South, Central, and West Asia.

He said, “The ADB Vice President visited today and inquired about our economic situation. We told him that our economy is in better shape than before. We’ve made notable improvements in our macroeconomic indicators and implemented several reforms in the banking sector. One of our key successes has been in trade, and the ADB appreciated a recent private sector investment summit.”

“ADB is currently supporting our infrastructure development and will continue to do so, with several other projects in the pipeline. We discussed the disbursement of their pledged budget support, during which they inquired about the IMF. We informed them that our discussions with the IMF are ongoing. ADB also emphasized increasing private sector participation. We’ve engaged with institutions like IDCOL, BIF, and IFC. Additionally, ADB proposed holding a workshop in Dhaka to promote private sector investment,” he added.

When asked whether the delay in IMF loans would affect ADB’s budget support, Dr. Salehuddin replied, “They look into the IMF’s stance on budget support. ADB inquired about our macroeconomic status. We are in discussions and hope the issues will be resolved. The IMF mentioned that a letter confirming our macroeconomic improvements would reassure them. We told them we would provide it – but not immediately. We won’t rush into accepting tough IMF conditions. So far, we have not taken any budget support from them.”

Regarding ADB’s satisfaction with Bangladesh’s economic stability, he said, “ADB said our economy is performing better than many other countries. That’s why we are optimistic. They are pleased with our achievements. They are also aware of our preparations for LDC graduation.”

He concluded, “ADB is closely observing Bangladesh’s development. They will continue to support us in project implementation, banking reforms, and reforms in the National Board of Revenue (NBR).”