Jasim Uddin Haroon
Bangladesh is lagging far behind the deadlines for implementing some of the key reforms, including a review of the foreign exchange control law, suggested by a multilateral lender.
The reform measures, mostly financial sector-related, were initiated mainly in 2011 and 2012. The deadline for completion is 2014.
The finance division tallied 39 such reform initiatives recently. And those are believed to have been suggested by the Washington-based IMF (International Monetary Fund) as a condition binding the extended credit facility (ECF).
But the official progress report says the authorities have implemented most of the reforms taken in line with the Vsion-2021, the perspective plan and the sixth five-year plan.
Sources at the finance division said the division organised a meeting on the issue recently. It reviewed the reform initiatives for better bargaining with the IMF mission assigned to see progress in reforms in various areas.
An IMF team has been on a visit to Bangladesh since September 18 for a firsthand appraisal of the reforms.
The team expressed dissatisfaction with progress in many respects of the reform agenda, including the VAT act, according to media reports.
The Finance Minister AMA Muhith, after a meeting with the IMF delegation, told reporters that the government would not be able to complete VAT reform this year. Completing this may take until 2016.
"I'm not sure whether the IMF mission will agree with me or not," he was quoted as saying about the need for a longer time.
However, the list of long-failed tasks, prepared by the finance division, also includes appointment of global audit firm for external evaluation of Bangladesh Petroleum Corporation, purchase of software required for value-added tax automation, guidelines for credit-risk assessment in providing state guarantees.
The FE has got a copy of the list.
During the visit, the IMF team wanted to know why the software- procurement tender was cancelled.
The government also did not finalise the country's first-ever medium-term debt strategy.
The list, however, demonstrates that many of the reforms are in the process of implementation although deadlines for many already ended sometime this year (2014).
However, the country accomplished most of the reforms related to the financial sector by their respective deadlines.
As to the review of the foreign exchange control act, the government in its progress report mentioned that the bank and financial division was taking necessary steps for sending the matter to the cabinet.
The deadline for the reform ended one year back in September 2013.
As regards global audit firm for the BPC, the government in its report said the petroleum corporation had already sought approval from the finance division.
The government opines that it will give its necessary consent to the BPC before the expiry of September 2014.
In relation to the tax-exemption-and tax-holiday facility equivalent to 0.5 per cent of the gross domestic product, the government report says it has done the matter partially.
The official report says a bill relating to the public-private partnership act now lies with the legislative and parliamentary affairs division.
About conducting external audit for the central bank, the government said it had already appointed a firm.
The government report says the BPC advertised for appointing financial professionals to strengthen its financial management but it failed to find any.
However, the government in its report said it will take further step for fulfilling the task.
jasimharoon@yahoo.com
