Releases $136.6 million under ECF
The International Monetary Fund on Thursday asked the government to ensure better work environment in the readymade garment sector.
The IMF, while releasing $136.6 million loan, the third tranche under the Extended Credit Facility deal, said, ‘continued improvement in labour conditions in the garment sector, in coordination with international business and development partners, would be welcomed.’
Bangladesh, second largest garment exporting nation, is under pressure from buyers across the globe after the collapse of a multi-storey building that housed five garment factories and death of more than 1,100 workers. In November last year 112 garment workers were killed in a fire at the Tazreen Fashions.
Bangladesh would receive $409.7 million with the latest release that was decided by the IMF executive board under the chair of its deputy managing director Naoyuki Shinohara, said an IMF statement.
It said that continuation of policies is necessary during the pre-election period in order to keep the fiscal policy on track and speed up tax collection.
The board viewed that Bangladesh’s programme under the ECF was broadly on track.
Macroeconomic pressures have eased, with reserves rising and underlying inflation moderating, supported by restrained fiscal and monetary policies, it said, adding that growth was slowing and could weaken further given downside risks.
It will be important to maintain sound policy anchors and keep up the reform momentum, the IMF noted.
‘Structural reforms have also moved forward. Timely implementation of the new value added tax will help increase revenues and modernise the tax regime. Timely passage of the banking law amendments recently introduced in parliament will strengthen financial sector governance and keep risks in check, especially those arising from state-owned banks,’ it said.
-With New Age input
