Salehuddin: Bangladesh, US discusses economic reforms, support in financial sector

The government has discussed the issues with the visiting US delegation relating to economic reforms, availing support in financial sector and the measures for bringing back siphoning off money from abroad.

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Adviser to the interim government on the Ministries of Finance and Commerce Dr Salehuddin Ahmed said this replying to queries of reporters after holding a meeting with the visiting US delegation and witnessing the signing of an amendment to a grant agreement held at the State Guest House Padma in the capital.

The United States Agency for International Development (USAID) will provide $202.25 million grant to Bangladesh in three sectors namely good governance; social, human and economic opportunity; and resilience.

In this regard, the 6th amendment of the "The Development Objective Grant Agreement (DOAG)" was signed today between Bangladesh and USAID at the State Guest House Padma in the capital.

Economic Relations Division (ERD) Additional Secretary AKM Shahabuddin and USAID Mission Director Reed J. Aeschliman signed the amendment on behalf of the government of Bangladesh and USAID respectively.

Adviser to the interim government on the Ministries of Finance and Commerce Dr Salehuddin Ahmed, visiting US Assistant Secretary for International Finance of the US Department of Treasury Brent Neiman and US State Department Assistant Secretary for South and Central Asia Donald Lu, among others, witnessed the signing ceremony.

Finance Division Secretary Dr Md Khairuzzaman Mozumder and ERD Secretary Shahriar Kader Siddiky were also present.

Dr Salehuddin said the today's discussion with the US delegation mainly focuses on with the treasury department and with USAID where the issues relating to financial sector reforms to ensure good governance and availing support in financial sector got priority.

Besides, there were discussions on export diversification, availing technical assistance in trade and exploration of markets. "We've to move ahead with specific work plan and they (USA) have assured us of providing support."

Regarding the grant agreement amendment, the Adviser said that the USAID would provide additional $202.25 million under the fresh amendment to the agreement.

When asked whether there was any discussion on bringing back siphoning of money from abroad, Dr Salehuddin said there were discussion in this regard while discussion in details would be held later on.

Besides, he said there was also discussion on revenue sector reforms and tax reforms.

Änjali Kaur, the United States Agency for International Development (USAID) Deputy Assistant Administrator for Asia, said that under the fresh amendment, some $200 million support would be provided to the interim government of Bangladesh in priority sectors.

"We've consulted, listened and will work with the interim government and here we're ready to deliver through this agreement," she added.

She opined that this support would help the government to move ahead it's priority works and would also help to ensure inclusive prosperity for the people of Bangladesh.

Anjali said this means boosting economic stability, improvement in health and good governance and young generation's empowerment.

On September 27, 2021, a new DOAG was signed between Bangladesh and USAID for the period of 2021-2026.

By implementing the DOAG, USAID is committed to contribute a total of $954 million. So far up to 5th amendment, USAID has provided $425 million to Bangladesh.

The United States of America is a trusted development partner of Bangladesh since 1972. Under an umbrella agreement titled "Economic Technical and Related Assistance" which was signed in 1974, US has contributed more than $8 billion till today in different sectors like democracy and governance; food security; health and education; global climate change.

The US provides most of its development assistance through USAID, United States Department of Agriculture (USDA) and some other government and non-government organizations.

Source: BSS