Negative reporting forced govt to clarify NBR reform plans to IMF: Finance adviser

Finance Adviser Salehuddin Ahmed has said "negative" media reporting on the National Board of Revenue (NBR) – that NBR officials were resisting government's organisational reform decisions – forced the government to provide written explanations to the International Monetary Fund (IMF).

"There were reports that NBR officials were not complying with government decisions, leading the government to suspend its plan to split the agency. Following that, the IMF asked me to provide a written assurance that the reform would still be implemented.

"I had to issue an official clarification," Salehuddin said at an award ceremony yesterday.

The separation of NBR's two divisions was one of the conditions for the IMF's $4.7 billion loan.

The SME Foundation and the Economic Reporters Forum organised the media award ceremony at the ERF office in the capital's Purana Paltan today (2 July). A total of 21 journalists were awarded at the event for their outstanding reporting on SME-related issues.

Salehuddin addressed the role of the media in shaping public perception, saying, "Journalists often take a negative stance in their reporting, which leads to various problems. Instead of viewing a half-filled glass as half full, many report it as half empty. Constructive criticism is welcome, but it should come from a positive perspective."

Explaining the smaller size of the national budget this year, he said, "The previous government's projects were riddled with wasteful and unnecessary expenditures. We've tried to reduce such wastage, which is why the budget appears smaller."

The adviser said the country's economic growth continues to rely heavily on the small and medium enterprise (SME) sector, which also generates the highest employment. 

Stressing its future potential, he said it is crucial to ensure greater financial access, technological integration, and global market connectivity for this sector.

"Despite various narratives around our growth model, the SME sector remains the main pillar of our economy. It also leads to job creation," he said. 

"However, SMEs contribute only 26% to GDP, which is not sufficient. In many other countries, this contribution reaches as high as 60%. It is a misconception that developed countries rely solely on large industries. In Japan, many SMEs are globally renowned. Even Rolex watches are produced by SMEs," he added. 

Salehuddin Ahmed stressed the need to increase technological adoption within the sector. 

"The days of hammer and chisel are over. Some SMEs are already using technology, but the scope needs to be expanded further," he added.

Highlighting the sector's inclusive potential, he said, "SMEs provide significant opportunities for women's participation. Empowering women means more than just talk; it requires enabling them to work, and the SME sector is creating that space."

He acknowledged the financing barriers in the sector, saying, "Bankers often overlook SMEs in favour of large loans. They prefer handing out Tk10 crore in loans without considering the repayment. This mindset among bankers and policymakers must change."

Regarding refinancing, he said, "Bangladesh Bank has a refinance scheme for SMEs. It can be expanded, and the finance ministry will support this. If we can provide Tk60,000 crore in subsidies for fuel, why can't we allocate some for SMEs?"

He also advised creating a digital database for the SME sector and said, "If needed, the finance ministry will finance this. Foreign investors now seek digital access to information."

He recommended the SME Foundation follow a model like PKSF (Palli Karma-Sahayak Foundation), saying, "With well-designed projects and the right people, donors like the World Bank and IFAD will step in. PKSF is now a globally respected institution because of its financial transparency. The SME Foundation must maintain that same integrity."

"To truly develop the SME sector, we must connect it with both domestic and international markets. We also need to diversify our exports beyond current dependencies," he said.

Addressing upcoming reforms under the interim government, the adviser added, "Some reforms in the financial sector will be carried out by December. Whether political reforms will happen is uncertain, but reforms in the banking sector are expected. The government has even allocated funds of Tk2,000 crore in the budget to refund depositors' money, though that might be insufficient. We'll start the process and hope the next government will continue it."