Country concerned about forex reserves but not alarmed: Ex-BB governor

Bangladesh is concerned about forex reserves but not alarmed, said former Bangladesh Bank governor Dr Mohammad Farashuddin on Sunday (8 October).

"Our economy is still strong. Economically, we have overtaken Pakistan, Sri Lanka and are now competing with India," he said.

Farashuddin made the remarks while speaking as the chief guest at a debate competition on the strategy of increasing domestic income for economic protection organised by Debate for democracy in Dhaka.

He also said, "Why do defaulters get away not once, not twice, but again and again? Why do they take loans and don't pay them off? Farmers have to go to jail if they cannot repay an agricultural loan of Tk1,000 but the defaulters of Tk10,000 or Tk20,000 crore can travel abroad."

The former BB governor called for reconciliation among political parties in order to maintain stability ahead of the upcoming national elections.

"If we shed blood without resolving political disputes, our future will be unpleasant.

"Two-thirds of the MPs in the Parliament are businessmen, who form legislation for their own benefit. Therefore, politicians should get the opportunity to work in the interest of the country," he said.

Farashuddin further said, "If we cannot reform the financial sector with the IMF loan then what is the use of that loan?

"Only 28 lakh people are paying tax. There are many people in villages and towns who are able to pay tax – who should also be brought under the tax umbrella."

The IMF in January this year approved a $4.7 billion loan for Bangladesh: $3.3 billion under the Extended Credit Facility and Extended Fund Facility arrangements, and $1.4 billion under the new Resilience and Sustainability Facility.

The global lender disbursed the first tranche of $476 million to Bangladesh in February and is currently reviewing the terms fulfilled before releasing the second tranche in December.