Kamal calls for generating new reform ideas to bring more remittances

Finance Minister AHM Mustafa Kamal today urged
all concerned to come up with thought provoking reform ideas to bring more
remittances in the country for enriching the foreign currency reserve.

“More and more people are going abroad, but remittances do not commensurate
with the number of expatriates going abroad. Remittances could have reached
$30 billion a year,” he said.

Kamal also said, “Let us take necessary measures to augment the remittance,
pursuing both fiscal and monetary policies. I simply request you to kindly
come up with your thought provoking reform ideas, to bring more remittances.”

The Finance Minister was addressing the Public Financial Management (PFM)
Summit’23 as the chief guest held at a city hotel jointly organized by the
government of Bangladesh and the World Bank.

Highlighting the immense need of inward remittance under the current
circumstances, he said inflow of remittances solely can solve the country’s
problem of foreign exchange and eventually other macroeconomic problems
arising from this sector.

World Bank Country Director for Bangladesh Abdoulaye Seck and practice
manager, governance global practice of the South Asia region of the World
Bank Hisham Waly spoke as special guests chaired by Secretary of the Finance
Division Dr Md Khairuzzaman Mozumder.

Finance Division additional secretary Shirajun Noor Chowdhury made a power-
point presentation on the overview, successes and challenges of PFM reform in
Bangladesh while a video documentary showcasing key PFM achievements as well
as a short film on the success stories of the government pension reform were
also screened.

Noting that remittances have always played a vital role in the country’s
economy, the Finance Minister said that the inward remittances have increased
from $7.9 billion to $24.3 billion after introducing 2 percent incentives.

“But, we’ve failed to keep this momentum. So far, 10 million Bangladeshi
people are working abroad, and the number is growing every year,” he added.

The Finance Minister said Bangladesh has achieved several milestones of
public finance reforms under the dynamic leadership of Prime Minister Sheikh
Hasina.

Highlighting some of the important macroeconomic achievements of the
government over the last 15 years, Kamal said Bangladesh is now the 35th
largest economy in the world while the GDP size increased four and a half
times, amounting to $454 billion while it was only $91 billion in 2008.

He said on average, the GDP growth rate was 6.6 percent during 2009 to 2022
period which was 5.8 percent in the year 2002 to 2008.

“Likewise, our per capita national income increased 4 times from $760 to
$2,765,” he said, adding that 23.8 million new jobs at home and jobs for
another 7.1 million people in abroad were created over the last 14 years.

World Bank Country Director for Bangladesh Abdoulaye Seck noted that strong
public financial management systems ensure effective and efficient service
delivery and good governance.

“This is now more important than ever as we are confronted with an array of
complex and unprecedented global challenges, including the ongoing
repercussions of the COVID-19 pandemic, Russian invasion in Ukraine, climate
change, and others. In the face of these challenges, the role of effective
public financial management has never been more vital,” he added.

He said the Theme of the Summit “Institutionalization of PFM reform” could
not be more pertinent, given the challenging times all could find themselves
today. “This summit serves as a testament to the collective commitment we
share in strengthening public financial management systems worldwide,” he
added.

He went on saying, “We have seen firsthand in Bangladesh how stronger and
modern PFM systems were able to respond effectively when the pandemic broke
out. The PFM Summit 2023 serves as a platform to recognize Bangladesh’s
accomplishments in the realm of Public Financial Management over the past
three decades and discuss reforms needed to address existing and emerging
challenges.”

Seck said, “As we recognize the country’s progress in PFM system, we also
need to acknowledge the persistent gaps and the urgent need for reform.”

The World Bank Country Director also mentioned six critical dimensions which
are – transparency and accountability; inclusivity; sustainability;
innovation and technology; capacity building and global Partnerships.

“As we embark on this ambitious journey, let us remember that our goal is not
just effective PFM, but improved lives for all citizens. PFM reforms must
translate into better public services, reduced poverty, and enhanced and
inclusive economic opportunities,” he hoped.

World Bank practice manager, governance global practice for the South Asia
Region Hisham Waly, said that there is a need to have a sustainable PFM in
Bangladesh for a sustainable future.

Earlier, five former finance secretaries at a session shared their
experiences on the institutionalization of the PFM reform. They are Zakir
Ahmed Khan, Dr Mohammad Tareque, Fazle Kabir, Mohammad Muslim Chowdhury and
current central bank governor Abdur Rouf Talukder. Suraiya Zannat, lead
governance specialist, financial management, the World Bank team leader,
SPFMS, moderated the session.

The Finance Minister handed over crests to them as they were honored as
‘reform champions’ in PFM.

They suggested for developing skilled human resources in the PFM management,
introducing internal audit in all government institutions, sustainability in
the PFM, giving a big thinking in terms of restructuring the civil service.

Planning Division Secretary Satyajit Karmakar, Director General of CPTU
Mohammed Shoheler Rahman Chowdhury, NBR Member Masud Sadique, additional
secretary to the Cabinet Division Dr Mohammad Mosharraf Hossain, Director
General of Financial Management Academy (FIMA) Abul Kalam Azad spoke as key
PFM stakeholders in a session moderated by Finance Division additional
secretary Rehana Perven. (BSS)