Dhaka, Oct 1 (V7N): The International Monetary Fund (IMF) has commended Bangladesh's interim government's efforts to tackle economic challenges following recent turbulence and major floods. Chris Papageorgiou, IMF Mission Chief for Bangladesh, noted that the government's measures, including sustained monetary tightening and prioritizing capital spending, are praiseworthy.

The IMF mission, led by Papageorgiou, visited Dhaka from September 24-30 to discuss the nation's economic developments. He highlighted that the formation of the interim government had helped stabilize the political landscape and brought the economy closer to recovery. Despite this, economic activity remains slow, with inflation still in the double digits, exacerbated by a weakened balance of payments and pressure on foreign exchange reserves.

Addressing fiscal targets, Papageorgiou remarked that past government budgets were optimistic, and necessary cuts to non-priority projects would help manage the budget deficit. He also emphasized the need for improved tax revenue through reforms in tax policy and administration, calling for a simplified VAT system, reduced tax exemptions, and better digitalization of tax collection.

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