Bangladesh News: The International Monetary Fund (IMF) has given a huge blow to Bangladesh led by Mohammad Yunus. According to the report of the first Alo, Bangladesh has received a total loan of US $ 4.7 billion from IMF, out of which three installments have already been released. While the fourth and fifth installments could not be found. In fact, for the fourth and fifth installments, the IMF had laid the condition of improvement in four important areas, but a recent review has found that Bangladesh has lagged behind in fulfilling these conditions.

Major four issues- which did not improve
1. Weak revenue growth

2. Non-market based currency exchange rates

3. Inadequate cuts in subsidy

4. Lack of progress in banking sector

These points were put in front of the IMF officer Chris Papagorgioau during a briefing held in Dhaka. This review mission lasted for two weeks from April 6 and during this time the IMF team interacted with various departments of Bangladesh government.

GDP growth declines, still hope remains
Chris Papagorganiou said that Bangladesh’s economy is being affected by global uncertainties. In the first half of the current financial year, the GDP growth rate has come down to 3.3%, which was 5.1% last year. Although the inflation has come down from 11.7% to 9.4%, it is still above the target range (5-6%). Papagorgoyo said that the IMF will still continue the discussion and a final decision can be taken on the release of installments by June, provided the progress is satisfactory.

IMF’s big recommendations
The IMF said that the GDP ratio of Bangladesh said that the country should make a clear difference between tax policy and administration. Tax exemption should be reduced and permanent measures should be adopted to increase revenue. At the same time, the IMF has described points like legal reform, correct evaluation of asset quality, and control over money laundering. He has also recommended to increase the independence of Bangladesh Bank.

Will IMF’s loan stop?
Former World Bank chief economist Zahid Hussain believes that even though Bangladesh has not improved 100%, the possibility of stopping the IMF installment is less. He said that another IMF team will come in May, then things will be cleared.