PMO finds barriers to MPS implementation

Those structural barriers includes the government’s limitation of capacity to spend and slow investment in the private sector. Moshiur Rahman, Economic Affairs Adviser to Prime Minister, made an analysis of the January-July monetary policy statement finding the barriers. The analysis recommended the government agencies look into the structural barriers. The analysis also alleged US dollars were being smuggled out of the country. He said Finance Minister AMA Muhith can examine how the dollars are being smuggled from the country. He said the smuggling caused the increase of demand of US dollars in the curb and local markets. On January 29, Bangladesh Bank Governor Fazle Kabir announced the monetary policy statement for the January-July period. As per the policy, the private sector credit growth target will remain the same at 16.5%. But on June 30 last year, private sector credit grew 16.78%. But in November it declined to 15.01%. The target of the government loan was 10.8% but later it increased 1.3%  in the last six months. PMO appreciated Finance Division work to control the government loan growth rate and now the government paid Tk10,100 crore loan to the banks. PMO recommended a total of $700m deficit of the current accounts which indicated the imbalance between US dollars and Taka. The government agencies will identify different sources for the use of US dollars instead of using Taka. Demand of US dollars has increased in the Bangladesh market due to smuggling of the US dollars, said the PMO analysis.