[🇧🇩] Reforms carried out by the interim/future Govts.

[Saif]

Reforms may cause short-term economic slowdown: BB

Economic activities may slow down in the near term as the government has opted to initiate massive economic reform measures, the Bangladesh Bank (BB) said yesterday.

www.thedailystar.net

Reforms may cause short-term economic slowdown: BB

Economic activities may slow down in the near term as the government has opted to initiate massive economic reform measures, the Bangladesh Bank (BB) said yesterday.

The reforms will eventually benefit the economy in the medium and long run, it said in its July-September issue of Bangladesh Bank Quarterly, a publication of the central bank.

This comes two days after the World Bank projected that Bangladesh's economy may grow by 4.1 percent in the fiscal year 2024-25 due to subdued investment and industrial activity amid heightened political uncertainty.

In its quarterly publication, the central bank said that Bangladesh's economy is going through a transitional phase with the formation of the interim government, while a gradual return to economic normalcy has already started.

The reforms will eventually benefit the economy in the medium and long run, the central bank said

The BB said the economy experienced significant disruptions across all three major sectors—agriculture, industry, and services—following the uprising in July and August last year.

Moreover, when the interim government started its journey with greater commitments towards economic reforms, economic activities were affected by repeated floods in many districts during August and September 2024.

Nonetheless, rebounding external demand, reflected in robust export growth and hefty remittance inflows during the July-September period of fiscal year 2024-25, depicted a promising momentum towards growth performance in the coming quarters.

The BB said inflation rose to 9.92 percent in the first quarter of FY25, up from 9.72 percent in the last quarter of FY24.

Inflation surged to a record high of 11.66 percent in July 2024 before softening in the subsequent two months.

"The July spike, the highest in 13 years, was primarily attributed to supply chain disruptions from the nationwide student uprising," said the central bank.

The BB said rising food inflation was the main driver of headline inflation in the first quarter of FY25.

Moreover, the point-to-point core inflation, which excludes volatile items such as food and fuel, increased to 10.40 percent at the end of the July-September quarter of FY25, up from 8.32 percent at the end of the previous quarter.

The central bank said it intensified its contractionary monetary policy to ease persistent inflationary pressures.

"Inflation may require the continuation of a tight monetary policy stance for some periods ahead," it said, adding that the BB is likely to maintain its contractionary monetary policy stance until clear signs of easing inflation are evident.

The central bank said its initiatives for banking reforms to ensure governance in the financial sector are expected to bring macroeconomic stability very soon.

"In the medium term, the economy is anticipated to rebound gradually with the advancement of the reform activities and correction processes initiated by monetary and fiscal authorities."

The central bank said Bangladesh's external sector started to recover, reflected in an improved current account balance, a more stabilised exchange rate, and slower erosion of foreign exchange reserves.​

 

[Saif]

Six reform commissions get extended time until Feb 15 to finalise recommendations

The Cabinet Division has issued a notification extending the tenure of six reform commissions until Feb 15. The extension had been announced earlier by the Chief Advisor’s Press Wing, and a formal notification came on Monday, according to bdnews24.com. The commissions whose tenures have bee

thefinancialexpress.com.bd

Six reform commissions get extended time until Feb 15 to finalise recommendations
Published :
Jan 20, 2025 22:03
Updated :
Jan 20, 2025 22:03

The Cabinet Division has issued a notification extending the tenure of six reform commissions until Feb 15.

The extension had been announced earlier by the Chief Advisor’s Press Wing, and a formal notification came on Monday, according to bdnews24.com.

The commissions whose tenures have been extended include the Constitution Reform Commission, Public Administration Reform Commission, Anti-Corruption Commission, or ACC, Reform Commission, Judiciary Reform Commission, Police Reform Commission, and Election System Reform Commission.

Among these, the tenure of the Constitution Reform Commission, Election System Reform Commission, ACC Reform Commission, and Police Reform Commission ended on Jan 15.

Meanwhile, The tenure of the Public Administration and Judiciary Reform Commissions was set to end on Jan 31.

The interim government, led by Muhammad Yunus, had formed these commissions to initiate sector-wise reforms

Four of the commissions submitted their final reports by Jan 15.

The judiciary and public administration reform commissions are expected to file their reports by Jan 31.

Following the submission of the reports by the Constitution, ACC, police, and election system reform commissions on Jan 15, the government announced that the tenure of all six commissions would be extended until Feb 15.

During this period, the heads of these reform commissions will exchange views and coordinate their recommendations.​

 

[Saif]

Leadership structure barrier to NBR reform: advisory committee

Advisory committee formed to recommend proposals for the reform of the National Board of Revenue has identified dual role of secretary of the Internal Resources Division as an obstacle to the NBR’s efficiency...

www.newagebd.net

Leadership structure barrier to NBR reform: advisory committee
United News of Bangladesh . Dhaka 21 January, 2025, 22:56

Advisory committee formed to recommend proposals for the reform of the National Board of Revenue has identified dual role of secretary of the Internal Resources Division as an obstacle to the NBR’s efficiency.

The same person serves as the IRD secretary and the NBR chairman, complicating the NBR’s effective performance, the committee said in its interim report recently submitted to the government.

On October 9 last year, the interim government formed the five-member advisory committee through a gazette notification.

The committee comprises two former NBR chairmen – Muhammad Abdul Mazid and Nasiruddin Ahmed – and three former NBR members – M Delowar Hossain, Farid Uddin and Aminur Rahman.

As per the gazette, the committee’s responsibilities include advising on fiscal policy and revenue administration reforms, assessing the NBR’s institutional capacity and recommending modernisation measures.

It also focuses on promoting integrity, enhancing governance and improving citizen and stakeholder engagement regarding revenue reforms.

The interim mentioned that the dual role of the IRD secretary and NBR chairman, created to address administrative complexities, has hindered effective governance.

Established in 1979 under a secretary’s leadership, the IRD was intended to oversee tax policy, tax administration and taxpayer services as outlined in the Rules of Business, 1976.

But the report highlighted that the overlapping responsibilities have resulted in inefficiencies.

To resolve these issues and create a transparent, development-friendly revenue framework, it called for amendments to Presidential Order No 76 of 1972, proposing the restructuring of the NBR and IRD.

This demand is also being voiced by various stakeholders including development partners, the report added.

In this context, the advisory committee, after reviewing the relevant rules and regulations in this regard with a holistic view, proposals and suggestions from the relevant stakeholders, and following the international best practices, proposed that two activities of the National Board of Revenue – formulating revenue policy and revenue collection by implementing the policy.

The committee recommended separating the functions of policy formulation and revenue collection by establishing an independent ‘Revenue Commission’ with a department status.

While the commission would focus on policy development, the restructured NBR would concentrate on policy implementation and revenue collection, it said.

To make the proposed reforms effective, the report said, the organisational structure of both the proposed institutions will be upgraded by changing both horizontally and vertically.​

 

[Saif]

Public admin reforms: Cluster system may be proposed for ministries

The Public Administration Reform Commission is likely to recommend reducing the number of ministries and divisions to 30 from 55 to improve coordination and slash the government’s operational cost.

www.thedailystar.net

Public admin reforms: Cluster system may be proposed for ministries
Commission likely to suggest reducing number of ministries, divs to 30 from 55

The Public Administration Reform Commission is likely to recommend reducing the number of ministries and divisions to 30 from 55 to improve coordination and slash the government's operational cost.

It may also propose allowing political appointments for personal secretaries (PS) to the prime minister, ministers, the Speaker, and other senior policymakers in the government.

Led by Abdul Muyeed Chowdhury, the reform commission is deliberating whether to suggest the introduction of clusters of ministries and designating officials of certain cadres to a particular cluster.

Besides, proposals to divide the country into four administrative provinces and upgrading the standard of Bangladesh Civil Service exam questions are expected, said sources with knowledge of the matter.

The commission is expected to submit its recommendations on January 31 with a view to building a pro-people, accountable, skilled, and neutral public administration.

CLUSTER SYSTEM

The reform commission is planning to recommend five or six clusters of ministries and divisions where officers of certain cadres would be working, said the sources.


For example, a cluster focused on food security may include ministries like agriculture, food, environment, fisheries and livestock, and disaster management.

Officers appointed to these ministries would rotate and work across these ministries and departments, they added.

Sources in the public administration ministry said a similar cluster system was recommended by the last reform commission in 2000, and a draft policy for activities of the clusters was also prepared in 2013.

However, some influential officials from the admin cadre prevented its implementation, the sources claimed.

"If the cluster system is introduced, admin cadre officers will no longer have the same level of control over various ministries as they have now. This is why the system was not implemented," said an official from the cabinet division.

FEWER MINISTRIES, DIVISIONS

The reform commission is considering a proposal to bring down the number of ministries and divisions to 30. It could be even between 25 and 28, said a source.

If approved, this will bring down the operational cost and help coordination, the source said.

Currently, the government has 55 ministries and divisions. The interim government has already decided to merge two divisions at the home ministry.

Several officials said they believe it could be a good move since some ministries and divisions do not have much workload and could be merged.

Asked about the possible impact of this, public administration expert Firoz Mia told this newspaper, "If experienced politicians and a skilled bureaucracy work together, cutting down the number of ministries would not be a problem.

"However, under the current circumstances, it may disrupt public services."

He added that introducing such changes would first require forming a team of skilled individuals.

PROMOTION TO DS

The reform commission is considering a new promotion policy for the position of deputy secretary -- a 50:50 split between the admin and the other cadres.

Currently, 75 percent of the promotions are made from admin cadre officers and the remaining 25 percent from the other cadres.

This notion elicited a strong reaction from the administration cadre officers. Many of them are lobbying intensely to have the proposal changed.

Sources in the commission said most of the members support a merit-based, 100 percent exam-driven promotion system for the position of deputy secretary. The exams would be open to officers from all cadres.

However, the commission chairman was in favour of keeping 50 percent of the spots for admin cadre officials, the sources said.

APPOINTMENTS OF PS

Officials from the administration cadre are generally appointed as the PS to government high-ups. However, when governments change, they often face setbacks, including delays in promotions or being made officers on special duty (OSD), considered a punishment, said sources.

Last month, a BNP committee on public administration reforms, formed to come up with the party's stance before the commission, proposed appointing non-civil servants as PS to ministers.

The committee submitted the report to the reform commission on December 9.

Ismail Zabiullah, a member of the committee, said many officers who serve as PS to ministers are competent but often get accused of becoming biased towards a party.

"Therefore, we have proposed appointing officers from outside the cadres for these positions," said Ismail, also a former secretary.

The Daily Star contacted the reform commission chief and four other members, but they declined to comment.

FOUR PROVINCES

The commission may propose dividing the country into four administrative provinces. The commission's chairman verbally communicated this proposal to the government, but details could not be known, sources said.

The provinces -- Dhaka, Chattogram, Rajshahi, and Khulna -- could be made out of a broader strategy to ensure decentralisation, the sources said.

The commission members believe the current local government system is not functioning effectively. To bring about fundamental changes to local governance, the provincial system would be good, they said.

CHANGES IN BCS EXAMS

The reform commission is set to suggest significant changes to the BCS exam questions.

According to sources, the commission views that the standard of the questions is not at a satisfactory level. "The standard is at the SSC-level. It has to be upgraded," said an official involved with the commission.

Sources said measures would be taken so that candidates totally relying on guidebooks don't get the coveted jobs.

EMPLOYEES' ASSOCIATION

The commission is thinking whether to allow government employees to form associations. This issue was discussed at one of the commission's meetings, but no decision has been made so far.

Some commission members think the employees can form associations for their welfare only.

However, other members think that the association could evolve into something resembling a CBA (Collective Bargaining Agent).

A decision on the matter will be made soon, said an official.​

 

[Saif]

6 commissions discuss reform road map

Six reform commissions on Friday began discussing short and long-term strategies to develop a roadmap for implementing their recommendations.

www.newagebd.net

6 commissions discuss reform road map
Staff Correspondent 25 January, 2025, 00:15

Six reform commissions on Friday began discussing short and long-term strategies to develop a roadmap for implementing their recommendations.

The interim government formed 11 reform commissions in two phases after assuming power on August 8 last year with these six commissions were formed in the first phase.

Of the commissions, four— the ones on constitution, electoral system, police and Anti-Corruption Commission—submitted their recommendations on January 15. The public administration reform commission and judiciary reform commission are expected to publish summaries of their recommendations by January31.

These six commissions are also set to comprise the National Consensus Commission led by the chief adviser professor Muhammad Yunus.

The aim of the consensus commission will be to conduct dialogues with political parties regarding the implementation of the reform proposals.

Friday’s meeting of the commission was held at the constitution reform commission office on the Jatiya Sangsad premises.

‘We are analysing the reform proposals already submitted, seeking clarity where needed and determining how best and when to implement them,’ said Professor Ali Riaz, chief of the constitution reform commission and vice-chair of the National Consensus Commission.

Professor Riaz chaired the meeting, which was attended by electoral reform commission chief Badiul Alam Majumder, police reform commission chief Safar Raj Hossain, Anti-Corruption Commission (ACC) reform commission chief Iftekharuzzaman and judiciary reform commission member Justice Emdadul Haque.

As an initial step in building consensus on the reform proposals, they met at the same venue on Monday. Like the Monday meeting, no representative from the public administration reform commission was present on Friday.

The interim government granted the initially formed six reform commissions an extension until February 15 to finalise their recommendations.

‘With the extended deadline, we are now coordinating the recommendations and identifying which can be implemented immediately and which require long-term planning,’ Professor Riaz said, citing a recent ordinance on the appointment of the Supreme Court judges as an example of a short-term step in implementing the reform proposals.

On Tuesday, law adviser Asif Nazrul disclosed the ordinance, which includes provisions for an independent council for appointing judges to the Supreme Court, the introduction of a separate secretariat for the judiciary and a permanent attorney service.

The ordinance aligns with the recommendations made by the constitution reform commission, Professor Riaz noted.​