Dhaka: Finance Adviser Dr. Salehuddin Ahmed today affirmed that the country’s macroeconomic condition is currently stable, bolstered by a positive current account balance, a healthy financial account, and robust inward remittance flows. “Our macroeconomic condition is more or less good. The current account balance is positive…the financial account is positive and the inward remittance flow is good,” he stated during a briefing with reporters.
According to Bangladesh Sangbad Sangstha, Dr. Ahmed addressed the media after a working session of his ministry held on the second day of the ongoing DC Conference at the Osmani Memorial Auditorium. The session was attended by concerned secretaries. In his discussion, Dr. Ahmed highlighted proposals from Deputy Commissioners, which included digital disbursement of allowances, increased support for mentally and physically challenged individuals, and improved access to finance for SMEs. The proposals also addressed transport issues in remote areas and suggested widening the tax net to include rural businessmen who evade taxes and VAT.
Dr. Ahmed assured the officials that their proposals would be considered, recognizing the need for continuous improvement. He encouraged the Deputy Commissioners to present specific problems to the Cabinet Division or Cabinet Secretary, with the government committed to resolving these issues. Additionally, Dr. Ahmed emphasized the importance of digital transactions to ensure transparency and accountability in financial dealings.
The Finance Adviser also mentioned ongoing negotiations with the IMF regarding a $4.7 billion package. He clarified that the government was not desperate for loans from the IMF and World Bank but was seeking funds to meet its needs. The government anticipates receiving two IMF loan tranches in June, which would provide support for balance of payments.
On the matter of expanding the tax net, Dr. Ahmed suggested that the NBR could conduct special drives with the assistance of Deputy Commissioners to identify significant taxpayers. He reiterated the importance of widening the tax net without increasing rates, maintaining them at a tolerable level in the upcoming budget.
Dr. Ahmed pointed out that efficient field-level officials are crucial for delivering genuine government services, emphasizing the need for timely implementation of development projects. He called for generating employment at the local level through the Annual Development Programme (ADP) and highlighted the role of infrastructure and IT development in rural areas.
The Finance Adviser also discussed improvements in educational management, particularly in char areas, and stressed the importance of better facilities for teachers. He highlighted the need for stronger coordination among divisional and deputy commissioners and field-level officials, involving various sectors such as banking for a cohesive approach.
Dr. Ahmed concluded by emphasizing the need to collect more revenue, noting that only a small fraction of industrial units currently pay VAT. He advocated for a focus on direct taxes over indirect ones and encouraged patients and clients to insist on receipts for services rendered by doctors and lawyers to ensure accountability.
In a closing remark, Dr. Ahmed mentioned that the FAO and IFAD play significant roles in Bangladesh’s agricultural sector, and he has sought their increased support for further development.