US positive over reciprocal tariff issue: Dr Salehuddin

Highlights:

• US suggested Bangladesh imports LNG
• Bangladesh suggested setting up bonded warehouses for importing US cotton
• Two secretaries in two divisions – revenue policy division and revenue management division – to be set up for NBR
• More funds from IFC expected
• Says IMF loan delayed as prescribed market-driven exchange rate could lead to Sri Lanka like situation

Finance Adviser Dr Salehuddin Ahmed today (29 April) said the USA has  been positive over its reciprocal tariff issue with Bangladesh.

"They [USA] are very positive over the tariff issue," he said while replying to a question after chairing two separate meetings on the Advisers Council Committee on Economic Affairs and the Advisers Council Committee on Government Purchase at the Cabinet Division Conference Room at Bangladesh Secretariat today. 

Dr Salehuddin said during the different engagements with the US side, they suggested Bangladesh to import LNG under long-term contract.

Regarding the US tariff issue, he said many issues are related with the trade relations with the US.

The finance adviser said that they discussed with the US side on how to minimise the trade gap. 

"We've told them that we'll set up bonded warehouses for importing US cotton. The USA also wants to engage with us in a long-term contract for exporting LNG … but, we'll have to look into the cost of freight."

Besides, he said the USA is interested in exporting electronic goods and generators to Bangladesh as well as supporting Bangladesh in establishing an LNG terminal, and in eastern refinery modernisation.

Dr Salehuddin said following the US tariff issue, the government has already taken some decisions.

"We've already engaged the ministry of labour for improving the labour standards. We've also approached the USA for importing LNG and electronic goods," he added.

Regarding the separation of the NBR, he said that the issue is already settled.

"But, now the implementation is a challenge. There will be two secretaries in two divisions …revenue policy division and revenue management division," he added. 

During his USA tour, he said there were some issues in negotiations. 

"On the whole, the discussions were centred to continue the disbursement of two pending tranches by the IMF," he said. 

Alongside the engagements with the World Bank, the tour was on the whole successful as there were meetings with the IMF, ADB, OPEC Fund, IOM, IFC, US Chamber of Commerce and Industry.

He said they also held meetings with the US Energy Division, State Department, Labour Department, Agriculture Department and Treasury Department. 

Regarding his meeting with the IFC, the finance adviser said they expect more funds from the global development institution in the country's private sector in the coming days to fuel private-sector led growth.

Loan disbursement delay: IMF's market-driven exchange rate will push Bangladesh into Sri Lanka like situation, fin adviser says

The interim government is not desperate for loan disbursement from the International Monetary Fund), Finance Adviser Salehuddin Ahmed has said.

Speaking to reporters after a meeting of the Advisers Council Committee on Government Purchase this afternoon, he said, "All of the conditions of IMF for loan disbursement are not possible to implement right now.

"Especially, it's not possible to let the exchange rate be fully market-driven. If that is done, the exchange rate could rise to Tk160-200. The situation can become like that of Sri Lanka or Pakistan."

Bangladesh is getting $4.7 billion from the IMF, of which $2.31 billion has already been disbursed, and $2.39 billion is still pending.