Prominent economist Professor Abu Ahmed has questioned the logic behind complying with all the conditions set by the International Monetary Fund (IMF) saying that following every prescription does not ensure economic progress.
“If the IMF’s conditions worked perfectly, countries like Pakistan, Nigeria and Ghana would be among the richest economies in the world,” he told UNB over the phone.
Professor Abu Ahmed, who serves as Director and Chairman of the Investment Corporation of Bangladesh, pointed out that Pakistan has sought IMF bailouts 24 times yet continues to struggle economically.
He came up with the remark when asked about the recent turmoil in the National Board of Revenue (NBR) over the proposed move to split it.
Abu Ahmed said so far Pakistan has taken bailout programme from the IMF 24 times. “If the IMF prescription works properly then Pakistan, Nigeria and Ghana should do very well economically, why they are becoming poorer day by day,” he questioned.
Regarding the IMF prescription to split the NBR and establish two separate entities—the Revenue Management Division (RMD) and the Revenue Policy Division (RPD), he said that this was an old prescription.
“It was delayed in implementation, but the government should first examine global practices,” Abu Ahmed said.
NBR strike deepens revenue crisis, threatens fiscal stability: Economists
He also emphasised that the government must make independent decisions on which conditions of lending agencies to accept.
“The economy of Bangladesh is not in such a position where the government will vigorously beg for money by accepting all conditions,” he observed.
He mentioned before going to this decision of splitting the NBR, the government should look in to the matter with the local experts. “Does Bangladesh now lack educated experts on this issue?”
The NBR Reform Unity Council on Wednesday announced a series of fresh programmes, including continuous non-cooperation with the NBR chairman to press home their demands.
The Council will continue its non-cooperation with the Chairman of the National Board of Revenue (NBR).
They will submit a memorandum outlining their demands to the Chief Adviser on Thursday.
They will observe complete strike in all offices of the Tax, Customs and VAT Department, except Customs House and LC Stations, on May 24 and May 25.
The strike will be observed from 9 am to 5 pm at Customs House and LC Stations on these two days. But, export and international passenger services will be exempted from the strike.
A complete strike will be observed in all the offices of the Tax, Customs and VAT Department, except International Passenger Services, from May 26.