IMF sets 5 conditions for release of last PRGF tranche

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The International Monetary Fund (IMF) has set five major conditions, including introduction of uniform taxpayer identification number for the Large Taxpayers Unit (LTU), for releasing the last instalment under the Poverty Reduction Growth Facility (PRGF).

The IMF officials recently apprised the government of the conditions and the government has pledged to meet those, sources said.

“Bangladesh will receive about $110 million in the middle of next year if it meets the conditions set by the IMF,” a high official of the finance ministry said.

As per the IMF prescription, the government will have to introduce Uniform Taxpayer Identification (UTI) number for the LTU by March next year. The UTI number proposes to integrate the existing Tax Identification Number (TIN) and Business Identification Number (BIN).

Sources in the National Board of Revenue (NBR) said a committee has already begun to work on introducing the UTI and preparatory work has been completed. “We are very much hopeful to introduce the UTI by the IMF timeframe,” an official of the NBR said.

Another IMF condition asked the government to conduct joint audits for at least one-third of eligible audits conducted during June 2006 and February 2007.

The IMF also asked for cabinet approval of the corporatisation of nationalised commercial banks — Agrani, Janata and Sonali — by March next year.

As per another IMF condition, the nationalised commercial banks will have to maintain open position in their foreign exchange transactions in line with the central bank regulations.

Referring to the IMF conditions, sources said the government would also have to introduce oil-pricing formula by the end of current fiscal.

“Prior to introducing new oil-pricing formula, the government will have to review and strengthen social programmes designed to mitigate the impact on vulnerable groups of fuel price adjustments,” one source said.

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