The World Bank wants to reform the financial sector of Bangladesh. World Bank South Asia Vice President Martin Reiser, who is visiting Dhaka, held a meeting with the Finance Minister and Bangladesh Bank’s policy makers. The World Bank offered to help the central bank with reforms there. In response, Bangladesh Bank has made it clear that there is no need for assistance in reforming the banking sector for the time being.
In the meeting held last Monday, Martin Reiser, Vice President of the South Asia region of the World Bank, and Abdur Rauf Talukder, the Governor of the Central Bank, Deputy Governor Kazi Chaidur Rahman and Abu Farah, who are visiting Dhaka. Nacher along with concerned officials participated.
According to responsible sources who participated in the meeting, the officials of the central bank presented the dollar-crisis and the reserve situation before the World Bank. They said that the price of the dollar is determined on the basis of demand and supply. It is left up to the market. Due to shortage of dollars in the market, provision is being made from reserves. As a result, reserves are decreasing. Imports are falling as a result of various measures.
However, exports and expatriate income are increasing. As a result, the demand for dollars decreases. The situation will be normal in the future. The meeting also discussed lifting the interest rate limit.
After the meeting, Martin Reiser tweeted on his page. He termed the meeting as ‘Great’. In addition, he urged reforms for sustainable development in the meeting. He said in a tweet, ‘The macroeconomic situation was discussed in the meeting with the Governor of Bangladesh Bank. The World Bank continues to support and celebrate 50 years of cooperation with Bangladesh.
Bangladesh Bank told the World Bank that they have taken various initiatives to improve the financial sector. It has started signing Memorandum of Understanding (MoU) with banks that are in weak financial condition. The list of banks that need reform includes private sector National Bank Limited (NBL), Padma Bank (formerly Farmers), Bangladesh Commerce Bank, foreign sector ICB Islamic Bank and National Bank of Pakistan. However, banks that have recently been caught in irregularities have not been included in this list.
Finance Minister with the meeting
Meanwhile, Martin Reiser held a meeting with Finance Minister AHM Mustafa Kamal at a hotel in the capital on Tuesday night. In the meeting, the finance minister thanked the World Bank for providing budget support to various projects, especially during the Corona period and financing the purchase of Covid vaccines. On the other hand, while praising Bangladesh, Martin Reiser said that Bangladesh is an exemplary example for many countries in the world in terms of progress. Senior officials from both sides were present in the meeting.
business-in trade renovation need
Martin Reiser, Vice President of South Asia Region of the World Bank, came to Dhaka last Monday and joined Prime Minister’s Private Industry and Investment Adviser Salman F. Rahman for dinner that night at a hotel in the capital. At this time, he urged to reform the financial sector to make the business and trade of Bangladesh more competitive.
After the meeting, Martin Reiser tweeted and said, ‘Various issues regarding the economy were discussed at the dinner with Prime Minister’s Advisor Salman F. Rahman. The topic of discussion is how the Ukraine war has created challenges in the economy of Bangladesh and how Bangladesh is coping. Reforms in the financial sector are needed to increase the competitiveness of the private sector in this country. Apart from this, public private partnership (PPP) and regional communication have also been discussed.
Martin Reiser held a meeting with State Minister for Power Nasrul Hamid yesterday. At this time, Nasrul Hamid highlighted the current situation of the power sector. He sought World Bank’s assistance for the development of power and energy sector. On the other hand, the vice president of the World Bank expressed interest in the country’s electricity sector. He suggested rationalization of government expenditure management including adjustment of subsidies in the energy sector.
Meanwhile, on the occasion of the visit of the Vice President of the World Bank, the development agencies working in this country organized a lunch at a local hotel on Tuesday afternoon.
The visit of the World Bank vice president comes at a time when Bangladesh has sought USD 1 billion budget support from the organization to deal with economic pressures including the dollar crisis. Discussions are going on between the two sides. Currently 55 projects are being implemented in the country with the financing of the World Bank. The World Bank is giving about 1 thousand 569 million dollars in this.