Bangladesh expects to complete negotiations and other work under its ongoing programme with the International Monetary Fund (IMF) by January, Finance Minister Amir Khosru Mahmud Chowdhury said on Wednesday.
He said working groups from both sides were engaged in discussions and expressed confidence that the process would be completed within the expected timeframe.
“We hope to complete everything on time,” he told reporters at the National Board of Revenue (NBR) headquarters in Dhaka.
The minister said the country’s economy was moving in the right direction, pointing to growth in revenue collection during the first quarter of the current fiscal year.
Income tax collection grew by more than 14 percent, while customs revenue increased by around 14 percent during the July-September period, he said.
However, VAT collection recorded relatively slower growth, partly because the introduction of a quarterly return system had delayed the availability of complete monthly collection data.
He expressed hope that VAT revenue growth would pick up soon.
The finance minister cautioned against drawing conclusions about the full fiscal year’s revenue performance based solely on first-quarter figures.
The revenue collection situation would become clearer as the second, third and fourth quarters progressed, and the government remained hopeful of achieving its annual target, he said.
Asked about the shortfall in revenue collection against the target, Amir Khosru said government spending was being planned after careful calculations, with an emphasis on preventing the misuse of taxpayers’ money.
“Every expenditure must have value. There must be a return on investment and it must create employment,” he said, adding that the government was reviewing spending plans against these considerations.
He stressed that expenditure must remain consistent with available income.
On the timing of the next IMF disbursement, the minister said the engagement with the lender should not be viewed merely as an effort to secure the next loan instalment.
Rather, it was part of a broader financing programme involving the World Bank, the Asian Development Bank, the Islamic Development Bank and other multilateral and bilateral development partners.
The government was also working on different types of bonds as part of its broader financing strategy, he added.
He expressed hope that Bangladesh would receive financing under the ongoing IMF programme by January.
On the proposed separation of the revenue administration, the finance minister said a decision had already been taken and the initiative would soon be given a legal framework.
The process would then move forward for placing the matter before parliament, he said.