IMF's reply

The article “Business Leaders Critical of IMF's Dictat” (Aug 2), and editorial “Listen to Voice of Business Leaders” (Aug 3) highlight criticism, in a statement by top local business leaders, of government policy intentions to liberalise the external trade regime through lower import tariffs and tighter monetary policy.
The government's trade liberalisation policy intentions are, indeed, consistent with a strategy to sustain high growth, reduce poverty substantially, and benefit from increasing global and regional economic integration.
Contrary to what was reported, import tariffs and related charges in Bangladesh are still among the world's highest, and they exert considerable costs on domestic industries and consumers. With respect to monetary policy, central banks in the region and around the world are battling increasing price pressures and taking steps to tighten monetary policy. Bangladesh also faces these global realities. It is important to have an efficient and commercially-oriented banking system that can reduce lending rates from their current high levelsa point the IMF has emphasised repeatedly.
Finally, the fact that the IMF continues to support a pro-trade and pro-business agenda seems to escape the top business leaders in Bangladesh who signed the statement. Better infrastructure, good governance, less onerous regulation, and avoiding needless harassment of legitimate businessmen a point specifically advocated by the IMF in recent discussions are the best ways to promote a healthy business environment.