The International Monetary Fund (IMF) has found flaws in Bangladesh’s proposed revenue-sector reforms, which are tied to the next credit program, according to officials.
Ahead of the IMF and World Bank Group’s annual meetings, set for October 12-18 in Bangkok, the National Board of Revenue (NBR) and the central bank submitted reform plans to the Fund.
A Bangladesh delegation, led by Finance Minister Amir Khosru Mahmud Chowdhury, will discuss the reform blueprint with IMF top officials on the sidelines of the meetings.
Revenue and banking-sector reforms will be a key focus of the talks, and the NBR’s submission is considered important in this regard.
However, IMF officials found that the NBR’s proposal prioritizes this fiscal year’s higher revenue-generation plan but lacks required plans for future years to boost revenue collection.
The IMF officials did not find the NBR’s plans dependable for higher revenue generation, sources said.
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To address the gaps in the reform proposal, the Finance Division has decided to hold a virtual tripartite meeting with the IMF and NBR officials.
A senior Finance Division official said the submissions from the NBR and the Bangladesh Bank are important, as major reforms will be conducted under the next lending package.
The IMF will seek a clear reform agenda from the revenue board and firm commitment from the government for implementation in the next credit program, the official said.
The finance officials expect to secure some $4.0 billion under the new lending package.
The previous credit program of $5.5 billion was scrapped by the current government a few months after coming to power, as it found many of the negotiated reforms not feasible.
