NBR Chief Hopeful on Resolving IMF Loan Issues

National Board of Revenue (NBR) Chairman Md Abdur Rahman on Tuesday expressed hope about resolving issues with the International Monetary Fund (IMF), paving the way for the release of the third and fourth tranches of the $4.7 billion loan programme.

“They (IMF) are pressing us to open the exchange rate, in lieu we are placing various types of formulas, the discussion is on, we are hoping to get a good result,” he said.

The NBR chairman made the remarks while addressing a seminar titled Macroeconomic Partnership and Fiscal Measures at the Economic Reporters’ Forum (ERF) auditorium.

He said the recent engagements with the IMF were positive and the lending agency provided several recommendations.

“We accept many of those, and what is not possible for us to take we resist them,” he said.

Abdur Rahman Khan also acknowledged that in some areas Bangladesh could not reach a consensus.“ Negotiation is going on, may be we could reach in to agreement,” he said.

The IMF has suspended the disbursement of the third and fourth tranches of its $4.7 billion loan package to Bangladesh, citing the government’s failure to meet key reform conditions.

Turning to the upcoming budget, the NBR chairman said both the Chief Adviser and Finance Adviser had instructed the formulation of a practical and realistic budget.

“We will focus on revenue generating initiatives shunning the expenditures,” he said.

He added that splitting the NBR into two separate divisions—Revenue Management Division and Revenue Policy Division—would be challenging, although the government has finalised the plan.

Abdur Rahman hinted at tough fiscal measures in the upcoming budget aimed at boosting revenue collection.

“We will implement all laws properly so that people do not feel that they are harassed,” he said.

Stressing the importance of revenue generation, the NBR chairman warned of broader economic consequences if collection targets were not met.

Policy Exchange Chairman and CEO Dr Mashrur Reaz presented the keynote paper at the seminar. ERF President Doulot Akter Mala and General Secretary Abul Kashem also spoke at the event, reports UNB.