IMF, WB praise BD Family, Farmer Card schemes

The World Bank and IMF view the government's Family Card and Farmer Card initiatives as effective steps to curb inflation and reduce poverty, said Finance and Planning Adviser Rashed Al Mahmud Titumir.

He made the remarks during bilateral meetings with the World Bank Group and International Monetary Fund (IMF) at the Queen Sirikit National Convention Center in Bangkok, Thailand, on Friday.

Titumir said independent research agencies project that the Family Card program will reduce poverty by 5 per cent. The IMF, World Bank, and Asian Development Bank also view such programs as effective tools to ease public distress.

Outlining the government's economic strategy, Titumir addressed questions on Middle East instability, persistent inflation, fuel price hikes, revenue collection, and banking sector reforms.

He stated that ongoing conflicts in the Middle East and inherited inflation have created hardship for low-income populations. The government introduced the Family Card and Farmer Card schemes to protect vulnerable groups and support farmers with subsidies, soft loans, crop insurance, and state-managed marketing.

Titumir criticized previous social safety net initiatives, stating that list errors excluded deserving individuals while including ineligible ones. He noted that nearly 8 million people slipped below the poverty line during the previous administration.

Regarding revenue collection, Titumir said the current government achieved 12 per cent to 13 per cent growth in revenue collection between mid-February and June 30. He attributed past revenue shortfalls to patronage culture, tax exemptions, and tax evasion.

He added that the government formed a task force to address these structural issues and step away from past practices. He noted that the tax-to-GDP ratio stood at only 6.7 per cent under previous administrations despite IMF commitments.

On banking sector reforms, Titumir estimated that resolving crises caused by past bank looting could require around $40 billion. He highlighted ongoing efforts under a Resolution Act to discipline troubled banks and restore depositor confidence.

He noted that depositors of Sammilita Islamii Bank have been able to withdraw funds since September 1. Lower treasury bond interest rates also indicate a return to normal banking operations, he added.

Titumir emphasized job creation as the third pillar of the economic strategy, focusing on building manufacturing hubs and export gateways to boost production and employment. He reaffirmed the government's commitment to preventing further increases in poverty while stabilizing the national economy.

-SA