Saifur-A bold reformist

Finance Minister AMA Muhith on Saturday said former Finance Minister M. Saifur Rahman had undertaken many economic reform measures, some of which are memorable and some others could be followed.
“Some of his (Saifur) reform measures are still being pursued,” he told UNB in a telephonic interview hours after his predecessor died in a fatal road accident at about 12:15 pm in Brahmanbaria.
“It would not have been possible for him to become the longest serving Finance Minister of the country unless he has had some good works to his credit,” Muhith evaluated the Finance Minister, who presented 12 national budgets out of the total 39 in the parliament.
Saifur placed his first budget of Tk 4,108 crore, the ninth national budget, in parliament while his 12th budget of Tk 69,740 crore was the 36th national budget of the country in 2006-07.
Muhith placed the 39th budget of Tk 113,819 crore for the fiscal year 2009-10. The then Finance Minister Tajuddin Ahmed placed the country’ s first budget of Tk 786 crore in 1972-73.
“He was a successful professional, politician and Finance Minister,” said Muhith, who once served as ERD secretary under Saifur Rahman.
Former Finance Adviser Dr Mirza Azizul Islam said different forums abroad at many times acclaimed the overall economic management of the country, which was initiated by Saifur Rahman.
Former Finance Minister SAMS Kibria also continued the policies of Saifur Rahman, which proves that the policies undertaken by Saifur bode well for the country, he added.
In last 16-17 years since 1991, Dr Aziz said, the economic growth in every 5-year period has been increasing and the growth rose to 6-7 percent from 4.0-4.5 percent during the 1990-91.
He said the budget deficit has been contained at tolerable levels, the inflation barring one or two cases due to external and natural disaster factors were more or less stable, and the macroeconomic indicators have been stable.
“His (Saifur) policies must have substantial contribution to the economic growth and stability,” he said.
The former Finance Adviser, who worked with Saifur Rahman as the chairman of the Securities and Exchange Commission, does not believe that Saifur’s faster liberalization of trade has been a mistake as many had criticized on many occasions.
He said the economic growth would not be achieved unless the bilateral trade performance increased while the better trade performance has been an outcome of the faster trade liberalization.
“The people will remember the person who gave 12 budgets for the nation… he should be remembered,” Dr Aziz said.
Former Finance Secretary Dr Akbar Ali Khan, who worked with Saifur Rahman for long, said he was a “very bold reformist.” He introduced the Value Added Tax (VAT) system and floating exchange rate, liberalized trade, privatized SOEs, and planned introduction of the Food for Education (FFW).
“It is not that all of his reform measures went without criticism,” he said, adding that the VAT and trade liberalization drew the most criticism.
“But, the measures eventually bode well for the economy,” he said, adding that the next political government did not change the policy, proving that the policies were good for the country.
Dr Akbar, who was also a Finance Adviser, said that Saifur Rahman as a politician always spoke about good governance and clean politics even from the opposition bench. “His departure will create a vacuum both in the politics and economy.”
Former Bangladesh Bank Governor Dr Salehuddin Ahmed said Saifur Rahman had the capability to maintain enough balance between his profession and politics as he has been bold in his professional decisions amid political pressures.
For instance, he said, the then Finance Minister had taken a strong stance against giving approval for opening new commercial banks despite immense political pressures.
Dr Salehuddin also praised his negotiation skills with donor agencies like the World Bank and IMF that he pointed out the country’s reservations in the negotiations without any hesitation. Saifur frankly told the donors that a certain decision would adversely affect the country’s interest, he said.
About Saifur’s relation with the Finance Ministry machineries, Dr Salehuddin said the minister always tried to keep the economic management team busy. His appearance seemed to have been rude, but he was accommodative if somebody could show the courage to tell things with proper logic.
He said the decision on floating exchange rate was a bold one but it was right while the Money Loan Court Act and Anti-Money Laundering Act enacted during his time were also good policy measures, which would yield result gradually.
“I would not say trade liberalization was a wrong step, but it should have been backed by export diversification, investment, FDI inflow,” he said, adding that “he did it with courage. We cannot blame him for this.”
FBCCI President Annisul Huq said Saifur Rahman was uncompromising in his economic policy decisions and took strong stance on major issues. He said the trade liberalization was a major step towards economic growth of the country.
“The economic growth of the country did not decline after trade liberalization, rather it increased,” said the apex trade body leader.
Former FBCCI president Mir Nasir Hossain said Saifur’s leadership in opening up of trade has contributed significantly to the economic growth and develop a strong private sector in the country.
“We should continue with his economic policies for a sustainable economic growth,” he said.
The leading industrialist said the former Finance Minister had been very bold to utter “unpleasant truths.”

Courtesy of UNB, Dhaka