United News of Bangladesh

The World Bank has assured Bangladesh of continuing its assistance in ongoing projects along with the budgetary support. “It (World Bank) has expressed its satisfaction over the overall economic situation of the country,” Finance Adviser Salehuddin Ahmed told reporters after holding a meeting with World Bank’s visiting new Vice President for the South Asia Region, Johannes Zutt at his office in the secretariat. He said that Zutt appreciated Bangladesh’s advancement although it went through a very tough situation in the past one year. “We are very much happy to see the progress of financial sector, balance of payment, foreign exchange sector, all is going well,” the finance adviser quoted the World Bank official as saying. He also mentioned that Zutt put emphasis on revamping the private sector, its development, and enhancement of the Foreign Direct Investment (FDI) in the country. He said that Bangladesh is doing well overall comparing to the other countries of the world. The adviser said Zutt recalled his past role as the country director of the World Bank here 15 years ago and pointed out that since then Bangladesh has gained remarkable changes, especially in physical structure such as metro rail. “The World Bank will provide all kinds of support needed for Bangladesh,” the adviser quoted the VP of the Washington-based lender as saying. Responding to a question, Salehuddin said that World Bank is happy about the reforms that are going on in Bangladesh. Zutt, he said, appreciated central bank’s initiative for restructuring the banking sector. “The macroeconomic situation of the country is on the right track,” he quoted the WB official as saying. Regarding the US Tariff issue, the adviser said that the commerce adviser brief about the outcome of the negotiations on his return home from Washington. “He will inform us in which area we need to adjust our tariff, there is a tax policy and other issues involved in this matter, we will look into the matter,” he said. The issues relating to the operations of the IFC were also discussed in the meeting. Answering to a question, the finance adviser said that the interim government has availed whatever support it had sought from the World Bank. He informed that the next cycle of expected support would be raised in the upcoming Annual Meetings of the World Bank-IMF Group in October. Replying to another question,  Salehuddin said that the World Bank is happy over the reform initiatives in the financial sector including in the NBR. There were also discussions over the Chattogram Port, container terminal at Laldia, he said adding that they would extend support in the infrastructural sector. The WB vice president arrived in Dhaka on Saturday.

Finance Adviser Dr. Salehuddin Ahmed on Wednesday urged journalists to maintain a balanced and constructive approach in reporting especially on sensitive policy issues. “Negative reporting makes our work more difficult. Journalists often portray a half-full glass as empty,” he said while speaking as the chief guest at the ERF-SME Foundation Media Award ceremony at the Economic Reporters' Forum (ERF) office in the capital. The adviser pointed to recent media reports on the National Board of Revenue (NBR) reform which he said forced the government to provide clarifications to the World Bank and the International Monetary Fund (IMF). “Some reports claimed that the government postponed NBR reforms due to internal opposition. Consequently, the IMF demanded a written assurance that the reform will proceed. I had to send a formal explanation,” he said. On budget size, he said excessive spending by the previous government prompted efforts to curb waste. “This is why the current budget is smaller.” Focusing on the SME sector, the adviser emphasised its critical role in employment generation and economic resilience. “The backbone of our economy remains the SME sector. It generates the highest employment and holds immense future potential. However, its contribution to GDP is only 26%, whereas in many countries it goes up to 60%,” he noted. Dr Salehuddin called for greater access to finance, improved technology integration, and stronger global market linkages for SMEs. Govt ready to use already allocated funds for election: Finance Adviser “Bankers don’t prioritise SMEs. They prefer issuing large loans without accountability. This attitude must change,” he said. He proposed enhancing Bangladesh Bank’s refinance scheme and suggested SME subsidies like those offered in energy. “A digital database for SMEs is crucial. If needed, the finance ministry will fund it,” he added. He recommended that the SME Foundation follow PKSF’s model to boost capacity and attract donor funding. “Transparent financial management is essential. No compromise can be made,” he warned. The event awarded 21 journalists for their reporting on SMEs. SME Foundation Chairperson Mushfiqur Rahman highlighted the foundation’s limited capacity, noting that only 11,000 of the country’s 11.8 million SME entrepreneurs have received financing so far despite a recovery rate above 99%. Managing Director Anwar Hossain Chowdhury said the foundation received Tk 500 crore in funding since 2006 and stressed the need for a permanent office, incubation centers, and exhibition spaces to support SME growth. The event was conducted by ERF General Secretary Abul Kashem. ERF President Doulat Akter Mala and Foundation GM Md. Jahangir Hossain also spoke.

Finance Adviser Dr Salehuddin Ahmed on Tuesday firmly said the National Board of Revenue (NBR) will continue operating as two distinct entities—tax and customs—clarifying that all previous confusion over the separation has now been resolved following discussions with cadre officials. “Officials have been informed that the decision to split the NBR—based on national interest, public interest and business considerations—will stand as it is,” he said after a meeting with the cadre officials at the Secretariat. Dr Salehuddin said there are still several implementation steps ahead, when the government will consider how many of the officials’ demands can be accommodated. Concerns of the officials will be considered during the formulation of regulations for the two newly formed departments, he said, adding, “We will try to incorporate their demands as much as possible while drafting the new rules.” NBR strike deepens revenue crisis, threatens fiscal stability: Economists Dr Salehuddin, however, said there will be no further formal meetings with NBR officials regarding this issue. “There is already an advisory committee in place. Officials will communicate with that committee moving forward,” he said. When asked whether today’s meeting was fruitful, Dr Salehuddin replied, “Yes, the meeting was productive.” On the question of when the newly separated departments of the NBR will begin operations, he responded, “First, a gazette notification must be issued. Even before that, there is a lot of groundwork to complete.” When asked how long the full implementation would take, Dr Salehuddin said, “We are trying to move as quickly as possible.” Regarding whether this would be completed before or after the budget, he commented, “The budget will be presented on June 2. How could we do this before that?” In response to whether NBR officials are satisfied with today’s meeting and whether they will end their protest, Dr Salehuddin said, “We have told them to withdraw their movement. Whether they do or not is not my concern.” When approached for comment, NBR Chairman Md Abdur Rahman Khan said, “The Finance Adviser and other advisers have listened to the concerns voiced by the officials. The ministry will now take further action.” NBR Reform Unity Council suspends pen-down programme The meeting was attended by Energy Dr Muhammad Fouzul Kabir Khan, Environment and Forest Adviser Syeda Rezwan Hasan and senior officials from the Ministry of Finance and the NBR. On May 12, a government notification was issued, officially dividing the NBR into two departments: Revenue Policy and Revenue Administration. NBR officials strongly protested the move, claiming that officers from the tax and customs cadres have been sidelined and subjected to undue control under the new structure. In response, many officials engaged in the recent pen-down strike. Meanwhile, the Finance Ministry in a press release said representatives from the Revenue Reform Advisory Committee of the National Board of Revenue, BCS (Tax) cadre, and BCS (Customs and Excise) cadre presented their views and opinions at the meeting regarding the ‘Revenue Policy and Revenue Administration Ordinance, 2025’. The concerns, suggestions and opinions expressed by the officials regarding the ordinance were heard with due importance. The Adviser assured that the issues raised would be duly considered, the media release added.