US stands ready to help carry out reforms

The US has expressed strong commitment to work with the interim government, which sought support to rebuild the country, carry out reforms, and bring back money laundered by corrupt individuals.

Chief Adviser Prof Muhammad Yunus asked for the help when a US delegation met him at the state guest house Jamuna.

The delegation, led by US Treasury Department’s Assistant Secretary Brent Nieman, praised Prof Yunus’ leadership and said Washington would be happy to support his reform agenda.

The US officials said they were eager to offer technical and financial assistance.

Yesterday, the two countries signed an agreement under which the US would provide $200 million to Bangladesh as development support.

“Our delegation met Chief Adviser Professor Muhammad Yunus, affirming our dedication to fostering inclusive economic growth, institution building, and development to benefit the people of Bangladesh,” the US embassy said on its Facebook page.

“As Bangladesh looks to chart a more equitable and inclusive future, the US stands ready to support those efforts.”

This is the first visit by any US delegation after the formation of the interim government.

Officials concerned said the visit is a reflection of a fresh start of the relationship as US-Bangladesh ties were strained during the Awami League regime.

Over the last few years, the US imposed sanctions on Rab and implemented a policy under which Bangladeshis who would undermine democracy would be denied US visas.

Donald Lu, US assistant secretary of state for South Asia; Brendan Lynch, assistant US trade representative; Anjali Kaur, deputy assistant administrator; and Jerrod Mason, a director of the US Treasury Department, were in the delegation.

The delegation on Saturday met business leaders.

Yesterday, it called on Yunus, Foreign Adviser Touhid Hossain, Finance Adviser Salehuddin Ahmed, and Bangladesh Bank Governor Ahsan H Mansur.

It also had a meeting with Foreign Secretary Jashim Uddin at the state guesthouse Padma, where secretaries of the Economic Relations Division, ministries of commerce, labour, home, Bangladesh Bank representatives, and the chairman of the NBR were present.

Yunus, during the meeting, said his administration has moved quickly to “reset, reform, and restart” the economy, initiate reforms to the financial sectors, and fix institutions, according to a statement of the Chief Adviser’s Office.

He said six commissions have been formed in an effort to prevent vote rigging, reform the judiciary, the police, civil administration, the anti-graft agency, and amend the constitution.

Prof Yunus said the government is committed to getting back the stolen assets siphoned off by corrupt individuals. “We were in an ocean of corruption,” he said.

Prof Yunus said the student-led revolution has ushered in a new era of hope in Bangladesh. “It is a very important time for us and a significant moment in our history.”

During the hour-long meeting, financial and economic reforms, investment, labour issues, and the Rohingya crisis were discussed.

Prof Yunus presented a book on the graffiti of Bangladesh to the US delegation. The book has photos of some of the finest work done during the student-led uprising in July-August on the walls of Dhaka and other cities and towns.

FINANCIAL, REVENUE SECTOR REFORMS

After the meeting, Foreign Secretary Jashim Uddin told the media that the US delegation prioritised reforms to financial and revenue sectors during the discussion.

He said Dhaka would take expert help from the US as Bangladesh Bank was discussing specific measures to bring back laundered money.

The two sides also discussed trade facilitation, GSP facility, and US International Development Corporation.

“We have informed them of the reforms made to the labour sector. They took note of those and appreciated the progress made. They will continue the discussion on labour reforms.”

The US suspended GSP facility following the Rana Plaza collapse in 2013.

It did not grant financing under the DFC facility, which mandates improvement of labour conditions.

However, there was no specific discussion on GSP or DFC finance yesterday.

Asked about withdrawal of sanctions against Rab, Jashim said they updated the delegation on Rab reforms and that Dhaka would continue to discuss the matter.

The US side brought up the recent developments in Myanmar and the humanitarian assistance for the Rohingyas in Bangladesh.

In the last few months, about 15,000 Rohingyas have entered Bangladesh, creating new concerns for Dhaka.

“We spoke about eliminating the root causes of the Rohingya crisis … ,” he said.

Prof Yunus will be attending the UN General Assembly for five days from September 22.

Asked if there would be any bilateral meeting between US President Joe Biden and Prof Yunus on the sidelines, Jashim said if the schedule is adjusted, there may be such a meeting.

He said they presented the plans for reforms and discussed how the US can help in the process.

“The US side got an idea of these and eventually, the two countries will advance cooperation in various stages.”

The US is Bangladesh’s largest foreign direct investor (FDI) and the largest export country destination.

In 2022-23, US FDI in Bangladesh was $261 million. Last year, Bangladesh’s export to the US was $7.72 billion and imports were worth $2.04 billion.

Analysts said the US can support Bangladesh in various ways, like giving privileges for Bangladesh’s export to the US market, funding reforms, and investing in Bangladesh.

MEETING WITH BB GOVERNOR

Bangladesh Bank Governor Ahsan H Mansur sought financial support from the US for the ongoing reforms to the banking sector when the delegation met him at the central bank.

During the meeting, the US team discussed macroeconomic issues, including inflation and GDP growth, money laundering, bad loans, and reforms.

Bangladesh Bank Spokesperson Husne Ara Shikha shared the meeting details while talking to The Daily Star over phone.

Shikha said the US team wanted to know about the challenges of reforming the banking sector. The governor responded by saying there were no challenges, unless there was an untoward political issue in future.