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Sunday, October 14, 2012

IMF on Bangladesh

Naoyuki Shinohara, Deputy Managing Director of IMF gives an interview with Rejaul Karim Byron of the Daily Star and talks on the challenges and prospects of the Bangladesh economy.

Main points:
1. Bangladesh economy will expand by 5.8% in FY2013, BUT it will need to grow by 7.0% to 8.0% a year to achieve development objectives for the next decade. Generating more tax revenues from internal sources and better prioritizing expenditure will be crucial in reducing poverty and achieving the medium-term growth objectives.  
2. IMF is with the government in its fight against poverty by designing policies that help strengthen governance, reduce waster and excesses, and channel resources to growth-critical areas and there are two-prolonged approaches to do so: higher income through higher growth and targeted benefits for those most vulnerable to adjustment.
3. A major challenge for the government will be to keep subsidy-related costs under control and to ensure safety nets are in place to cushion the impact of administered prices increases on the most vulnerable.

Here is the link of the interview. 

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