Leaders of rights-based civil society organizations, coordinated by the Equity and Justice Working Group (EquityBD), on Monday protested the stringent conditions imposed by the International Monetary Fund (IMF) on its loan to Bangladesh.
They also urged resistance against IMF advice that undermines the financial interests of ordinary people.
They raised the protest at a human chain programme in front of the National Press Club in Dhaka city on Monday.
Bangladesh's economy had been relatively stable in recent years, and the government had not required IMF loans for development. However, the global economic downturn due to the COVID-19 pandemic and the ongoing war in Ukraine has caused significant economic stress. As a result, Bangladesh's economic reserves fell from $41 billion in 2021 to $19.5 billion in 2023, prompting the government to request a $4.7 billion loan from the IMF last year. The IMF is now in Bangladesh to negotiate the release of its third installment, but their stringent conditions are causing concern.
One condition demands the discontinuation of subsidies on electricity, furnace oil, and gas to save dollars. However, the IMF mission is not addressing critical issues like capital flight and money laundering, nor suggesting ways to increase tax revenue. Instead, they recommend increasing indirect taxes, placing a heavier burden on ordinary citizens.
The speakers at the human chain programme highlighted the need to rationalize subsidies and crack down on financial crimes rather than imposing punitive measures on the public.
Representatives from various organizations stood in solidarity with EquityBD, including Badrul Alam from Bangladesh Krishok Federation, Iqbal Faruk from Water Keepers, Ibnul Said Rana from NDF, Ziaul Haque Mukta from CSRL, Omour Faruk, and Ferdous Ara Rumee from COAST Foundation.
The human chain was moderated by Mustafa Kamal Akanda from EquityBD , while Rezaul Karim Chowdhury from EquityBD presided over the event.
In his speech, Rezaul Karim Chowdhury emphasized that subsidies for electricity, oil, and gas are crucial because they benefit the poor and ensure food security through agricultural support.
He criticized the IMF's recommendation to cut subsidies, suggesting instead that the government should focus on reducing capital flight.
Badrul Alam pointed out that the IMF's lack of concern for bankruptcy and capital flight raises questions about their intentions.
He suggested that the stringent conditions might undermine food security by discouraging agricultural production. Other speakers also echoed these sentiments.
