The World Bank (WB) Vtcc-President. Attila Karaosmanoglu. said in Dhaka Wednesday that the bank would like to see Bangladesh growing at a faster rate and becoming less aid-dependent and self-reliant.

Talking to the newsmen at Zia International Airport prior to his departure for Kathmandu at the close of a four-day visit to Bangladesh, the WB Vice-President said the bank appreciated fully the difficult challenges that the Government faced for going ahead with the economic reforms programme. But reforms and hard actions arc unavoidable for the long-term benefits of the common people, he added

He pointed out that the changes in the world "have a

great bearing on development efforts in Bangladesh.' The perceptions about economic development have changed and the needs for reforms are urgent in this context, he added.

WB resident mission chief Christopher Willoughby was present when Karaosmanoglu was talking to the newsmen.

The WB Vice-President said there were many problems and challenges facing Bangladesh on the economic front and these would require reforms. Elaborating this, he mentioned about the public sector enterprises in particular. "If such enterprises can operate only at a break-even point, financial resources of about Taka 20 billion can be saved’. he added. This will be savings in expenditures, he noted.

He stressed the need for carrying out reforms in close coordination in areas of trade. Industry and financial sectors. The goals of the new industrial policy of the Bangladesh government for an export-led growth pattern can be attained only through such coordinated reforms, he said while adding that the policy objectives would not be achieved without liberalisation of trade.

He observed that the reforms tn the public sector would need to be carried out in effective ways while making efforts at the same time for maintaining macro-economic balances.

'Wc are prepared tp support the reforms by providing funds to help absorb any adverse Impact on iIk- balance of payments and other economic sectors related to the changes", he said.

About the country's long ailing Jute sector, he said the annual burden of loss In the overall Jute sector in Bangladesh was about Taka seven billion.

He also mentioned. about the system loss in the power sector. The loss is now about 40 per cent which means that out of every one US dollar of expected operational earnings the power sector get only 40 US cents, he said. He pointed out that if the system loss of the Power Development Board could be reduced. Bangladesh could implement a project like Jamuna bridge in every four years.

Karaosmanogiu observed lliat he understood what difficult choices the new elected Government laced for effecting reforms and improving overall economic efficiency. The problems are all the more challenging because of the past negligence, he added.

He stated that there were some industrial units In Bangladesh which were permanently sick. Nobody likes the idea of closing down units but keeping the permanently sick units somehow operational is certainly not the an-

swer. lie added

He said Bangladesh would need to make aUout efforts to increase agricultural production. ensure food security, raise industrial efficiency, create competitive environment for trade, and invest more in health, education and other areas for human resources development. He felt that the basic policy goals of the new Government "are quite in tune with the needs.'

A transparent and efficient administration, he observed, could Implement the programmes in an effective manner. As the Government makes progress tn Implementation of reforms, the World Bank and the donor community will also continue to support its development efforts, he added.

The WB Vice-President said high prudential standards were needed for the financial sector and enforcement of discipline. lie noted with satisfaction Ilic slops taken by the Government for reforms in the financial sector. Recovery rates for bank credits, realistic interest rate structure and effective and well-defined monetary policy are the essential conditions for an efficient financial sector, he said.

He pointed out that a WB mission would arrive shortly in Bangladesh to review the financial sector adjustment programme for the release of the second instalment of credit funds by the bank under the programme. 'I see good reasons for the release of the second instalment credits for financial sector reforms', he added.

About the possibilities of resumption of the bank's credits for the energy sector development programmes, he said, there was already a WB mission working in the power sector. For disbursements of credits, a clear programme for reducing the system loss and other reform arrangements will have to the finalised for effective implementation, he said.

Replying to a question on prospects for ftnallstion of industrial sector credit. Karaosmanogiu expressed the

hope that it would go to the Executive Board of Directors of the Bank for approval this year. Before that there should be closer coordination between trade, industry and financial sectors for implementation of reforms, he said.

Replying to another question. he said the bank had proposed a new public resource management adjustment credit programme for Bangladesh. Specific reforms will bB supported by the bank in areas of public resource management under the programme. he added.

About the multi-purpose Jamuna Bridge Project, the WB Vice-President said the bank appreciated the keen interest of all political parties in the project. It is of course an important project for linking the two parts of the countiy. he admitted while adding that the project would involve a huge amount of development expenditures involving borrowings from Ihc external sources.

He said the returns on such huge investments for the Jamuna Multi-purpose Bridge Project as much as other studies would have to examined in more details along with the overall development expenditure prloHtisation exercises by the government. It is only recently that the prioritisation exercise were completed by the government, he said while adding that he would at this stage not like to comment about whether the project was going to the delayed or speeded up.

About his meeting with the government leaders In Bangladesh. Attila Karaosmanogiu said he had very useful and constructive discussions with them. In this connection, he mentioned about his meetings with the Acting President, the Prime Minister, the Finance and Planning Minister and several other ministers involved in economic policy formulation and finplementatlon.

The policy statements by the Government leaders and the programme for actions for reforms are quite encouraging. he observed.