Revenue-to-GDP ratio falls to 7%, among the lowest in the world.
IMF clears the way for Sri Lanka to access $345m bailout funds. Photo: Collected
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IMF clears the way for Sri Lanka to access $345m bailout funds. Photo: Collected
The International Monetary Fund (IMF) is prioritising increased revenue mobilisation and financial sector reforms in discussions on Bangladesh’s proposed new loan programme worth $4.5 billion to $5 billion.
The fund has said Bangladesh’s revenue-to-GDP ratio has fallen to 7%, placing it among the lowest in the world. It also stressed the need for strategic measures to address major problems in the financial sector.
Sonali Jain-Chandra, deputy director of the IMF’s Asia and Pacific Department, made the remarks today (15 October) while responding to journalists’ questions at a press conference on the Asia-Pacific region.
She said Bangladesh needs to increase revenue collection to restore financial sector stability and finance development activities.
She also stressed the importance of maintaining a contractionary monetary policy until high inflation comes under control and implementing necessary reforms on time.
Jain-Chandra said these issues were being reviewed as part of discussions on a new loan programme for Bangladesh. The IMF is working with the country on the reforms and monitoring progress, she added.
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