WB to review economic condition before disbursing budget assistance

The World Bank (WB) has sought some information about the present economic condition of Bangladesh before disbursing the budget assistance to the country.

A WB delegation, led by its Regional Director (equity growth and finance) Mathew Verghis, sought the information at a meeting with State Minister for Planning Shamsul Alam on Monday morning, organised at the Planning Commission office in the capital.

Emerging out of the meeting, the state minister told the media that before releasing the $250 million promised budget support, the delegation sought information about different issues.

“They wanted to know about the macro-economics of the country, the current condition of the reserve, inflation, amendment of VAT law,

progress of turning CPTU into a public procurement authority and finally, slow pace of implementing mega projects,” he added.

The state minister said, “I have told the delegation that decreasing the reserve to $38 billion is a challenge. But the country’s exports are increasing by 35% while imports are increasing at a rate of 23%. It means the country has a positive export rate.”

“Moreover, the country has received $2 billion in remittances in the last month. As a result, we are going to be in a comfortable situation,” he said, adding that it will reduce pressure on reserve as well.

Besides, inflation would not be able to hamper our production which is continuing without interruption, he added.

Alam said, “There has been an external impact on the increase in inflation and hopefully, it would decrease in the near future. We will have the economy under control, but we need budgetary assistance to maintain reserves. A lot of foreign loans and direct investment is needed.”

Regarding the slow pace of the development projects, he said that efforts are being made to speed up all projects, including the mega ones.

“We are focusing on green growth. However, management inefficiency is the biggest challenge to project implementation. And advancement has

been made recently in this regard,” he added. He also mentioned that the government is emphasising searching for new sources of renewable energy and own gas.

Meanwhile, World Bank Vice President for the South Asia Region Martin Raiser made a courtesy call to Ahmad Kaikaus, principal secretary to the prime minister, and Planning Commission’s Economic Relations Division Secretary Sharifa Khan on Monday at National Economic Council (NEC) Bhaban in the capital.