Financial reforms key to higher growth
The government should continue financial sector reforms to attain higher economic growth, advised the outgoing resident representative of the International Monetary Fund (IMF) yesterday.
Jonathan C Dunn, who is schedule to leave Bangladesh in August, also suggested the government formulate market-based policies to contain inflation and better run the economy.
"Financial reforms can bring even an 8 percent rate of economic growth for Bangladesh in the future," Dunn said at a regular monthly luncheon meeting of American Chamber of Commerce in Bangladesh (AmCham) at Dhaka Sheraton Hotel.
Criticising the high bank interest rate, he said, some of the instruments that the government has chosen are not appropriate.
He was speaking on "Changing global macroeconomic environment and Bangladesh" before local and foreign investors, trade body leaders and chamber leaders.
He advised the government to take advantage of the low commodity prices worldwide and import capital machinery and foodstuffs in bulk for reaping benefits in the future.
The IMF country chief said Bangladesh has an easy access to IMF funds and the country should increase public spending on poverty reduction to offset the negative impacts of the severe economic downturn.
Dunn suggested the government invest more in education sector to build skilled human resources, and simplify the tax policy for further business growth.
He said Bangladesh is less exposed to recession, mainly due to its robust export growth in the basic readymade garments (RMG) sector and the migrant workers' earnings.
"But almost all the Asian countries are feeling the pinch of the recession," he said.
Presiding over the meeting, AmCham President Syed Ershad Ahmed said this is right time to buy low-priced commodities from the world market.
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