Govt must not sign any deal with IMF against nat'l interest

The government must not enter into any treaty with the International Monetary Fund (IMF) that hampers national interest, no matter whatever amount of money it offers to lend, said the finance adviser.
"I will not accept any condition which is against the interest of the country," Mirza Azizul Islam said after a meeting with the visiting IMF team at his Planning Commission office yesterday morning.
Responding to questions from reporters about the Policy Support Instruments (PSI) treaty proposed by the IMF, he said still there has not been any discussion about the so-called PSI treaty. "But I can ensure you that I will not take any money, whatever the amount, giving away the interest of the country," he said.
But, after the meeting, IMF Asia-Pacific Department adviser Thomas R Rumbaugh said his organisation has many aspects, avenues and options to help Bangladesh, and they are interested to tie up themselves under a treaty with Bangladesh.
"There are several options; PSI is one of the options, while PRGF is another. But it depends on the government of Bangladesh under which treaty they want it," he said.
The finance adviser made it clear that the government would not refuse any budgetary support from any donor organisations or countries unless they tag any impossible condition binding the aid package.
Defending his stance on taking budgetary supports, he said the government can tackle the relief activities with its domestic resources, but the post-flood rehabilitation programme will need external support.
When his attention was drawn to some countries having said goodbye to the IMF for its policy advocacy that has allegedly done more harm than good to them, he said that getting out of the grip of IMF depends on what type of assistance is needed. "Many countries again enter the IMF after they get out," he said, apparently disapproving of such suggestion.
To a query whether it needs to enter into any treaty with the IMF for money when the Balance-of-Payments (BoP) situation is good, he said: "BoP and budgetary support is totally different issues--BoP is the part of remittance, it is not part of the government."
About the discussion points with the IMF, Aziz said they discussed revenue reform, income-tax law, reform in revenue management, revenue collection, inflation and financial-sector reform.
About the IMF proposal for separating revenue-policy body and collecting body, he said, "I support the proposal and once upon a time it was separate in the country. But we have some administrative issues to do that."
The finance adviser said the IMF team appreciated his government's effort to increase the revenue collection and reform initiative for financial sector.