Bangladesh seeks BoP support from IMF
Wednesday, 3 November 2010
The government has sought support from the International Monetary Fund (IMF) under its Extended Credit Facility (ECF) to meet its balance of payments (BoP) gap, Finance Minister AMA Muhith said Tuesday, reports UNB.
The finance minister admitted that the country had some BoP problems because of the rising imports and said terms and conditions under ECF are easy and flexible.
Muhith was talking to newsmen after his meeting with an IMF team.
IMF mission chief David Cowen led the six-member delegation. Economic Affairs Adviser to the Prime Minister Dr Mashiur Rahman, Bangladesh Bank Governor Dr Atiur Rahman and Finance Division Secretary Dr Mohammad Tareq were, among others, present on the occasion.
Asked on fees on Indian transit, the finance minister said that a certain fee, not duty, will be charged for providing transit facility to India for transporting their goods through Bangladesh.
"They will use our facilities that involve some cost for the government. So, we'll have to take something; it may be called fee or anything," he told reporters after holding a meeting with an IMF delegation at the Finance Division.
The finance minister, however, said that no duty could be charged for allowing transit. "If we charge duty, why then allow the transit?" he posed a question.
He said a certain amount of fee is to be taken for allowing transit as the government provides various facilities like roads, railways and waterways.
Muhith said that the government is going to formulate a guideline to determine the transit fee. There is currently a protocol for realising fee only for waterways and railways.
He informed that realisation of duty will remain suspended until a guideline is formulated. "Rules for realising transit fees are yet to be formulated," he said.
He dismissed the opposition's reservation about transit said, "Ours is a transit country; no matter who believes or doesn't believe this. We'll remain a transit country as geographically we are a transit country."
Asked about the IMF's view on the politically appointed directors in the state-owned commercial banks, Muhith said they have briefed the delegation on the issue.
He, however, said: "These are not the issues; the issues are domestic resource mobilisation, power generation, cost and subsidy."
The finance minister admitted that the country had some BoP problems because of the rising imports and said terms and conditions under ECF are easy and flexible.
Muhith was talking to newsmen after his meeting with an IMF team.
IMF mission chief David Cowen led the six-member delegation. Economic Affairs Adviser to the Prime Minister Dr Mashiur Rahman, Bangladesh Bank Governor Dr Atiur Rahman and Finance Division Secretary Dr Mohammad Tareq were, among others, present on the occasion.
Asked on fees on Indian transit, the finance minister said that a certain fee, not duty, will be charged for providing transit facility to India for transporting their goods through Bangladesh.
"They will use our facilities that involve some cost for the government. So, we'll have to take something; it may be called fee or anything," he told reporters after holding a meeting with an IMF delegation at the Finance Division.
The finance minister, however, said that no duty could be charged for allowing transit. "If we charge duty, why then allow the transit?" he posed a question.
He said a certain amount of fee is to be taken for allowing transit as the government provides various facilities like roads, railways and waterways.
Muhith said that the government is going to formulate a guideline to determine the transit fee. There is currently a protocol for realising fee only for waterways and railways.
He informed that realisation of duty will remain suspended until a guideline is formulated. "Rules for realising transit fees are yet to be formulated," he said.
He dismissed the opposition's reservation about transit said, "Ours is a transit country; no matter who believes or doesn't believe this. We'll remain a transit country as geographically we are a transit country."
Asked about the IMF's view on the politically appointed directors in the state-owned commercial banks, Muhith said they have briefed the delegation on the issue.
He, however, said: "These are not the issues; the issues are domestic resource mobilisation, power generation, cost and subsidy."