DHAKA: The International Monetary Fund (IMF) forecast that Bangladesh may achieve 6 percent Gross Domestic Product (GDP) growth in the upcoming 2010-11 fiscal year, scaling down a more upward-looking government target.

“With more supportive external conditions anticipated in FY 2010-11, growth should rise to around 6 percent,” said Eteri Kvintradze, the IMF Resident Representative in Dhaka.

Addressing a press briefing to launch a report titled ‘Regional Economic Outlook: Asia and Pacific- Leading the Global Recovery’ at Bangladesh Bank, she said the government should give priority on raising tax revenues and successful implementation of the Annual Development Program (ADP).

“The budget for FY 2010-11 should be aimed at raising tax revenues and increased ADP implementation to boost the economy’s medium-term growth potential and accelerate poverty reduction,” the lending agency’s country chief said in her suggestion.  

She said prospects for broader revenue growth hinges on other decisive actions to strengthen tax policy and administration in line with the new VAT law expected to be introduced in 2011 fiscal year.

The IMF also suggested ensuring good governance in government expenditure.

“Expenditures will need to be prioritized, well-executed and well utilized to ensure resolution infrastructure bottlenecks and better targeting of most vulnerable groups of population.”

She appreciated Bangladesh efforts in combating global recession. “Bangladesh has weathered the global crisis relatively well. But there are more options to do better.”

The multilateral donor agency predicts Asia to lead the global recovery from recession and grow by seven percent in both 2010 and 2011, when the global growth will be only four percent, opening new avenues for attracting foreign investment in Bangladesh.

“This is the chance to attract more foreign investment to Bangladesh”, she said.  

BDST: 1925, June 9, 2010
AKR/FA/MUA