Bangladesh which expects lo raise its economic growth to 5 per cent in 1995. can boast <4 success in maintaining inacro-eeonomic stability through sectoral reforms In recent years. Asian Development Bank (ADB) said in a report. says BSS

The annual reports of the bank titled. Asian Develop men I Outlook 1995 and 1996 made available in the city yes terday said in Hs chapter on Bangladesh that the expected growth, however depended on ihe loodgram output not seriously affected by deUys in the sowing of summer rice crop because of drought conditions in the country a northwestern region.

The forecast for the coun try s GDP growth in 1996 is expected to be 5.3 per cent, the report added

The economy of Bangladesh has undergone a slow but significant structural change in recent years as excessive dependence on agriculture and traditional exports has been reduced, said the report which is the seventh in the series of yearly economic reports on the

developing member countries (DMC) of the bank

rhe report said Bangladesh is fast approaching self-sufficiency in foodgrain in response to favourable weather and a conducive agricultural strategy The country has also improved its social indicators in recent years as population growth and poverty incidence have fallen while standards of health and nutrition have shown some improvement

Bangladesh's agricultural strategy which contributed for fast approaching to food sell sufficiency involved substantial liberalisation ol trade distri button and pricing of Inputs the report said

It further said tax reforms in recent years in Bangladesh have led lo a steady growth in revenue while containment of public consumption spending has released resources for financing the operation and maintenance of physical infras tructure as well as meeting the costs of labour rationalisation and the restructuring programme foe public sec tor en ter prises The external current account deficit In recent years has been contracted substantially. the report added.

While nothing that though the favourable macro-economic situation has not elicited much supply response owing to political uncertainty, the report suggested that the process of fiscal consolidation and structural reform must be pushed ahead if increased investment and economic growth are to be achieved over the medium term.

The report said although Bangladesh has made substantial progress in liberalising its economy, a more distinct Im pact on economic growth and investment was foreseeable "If the government is able to Implement more effectively the reforms in the public sector, labour markets, infrastructure development and the financial system".

It also mentioned that a conducive political environment "is important" for the achievement of these fundamental reforms.

Dwelling on Bangladesh's export performance in 1995. the report said the indications are that export will rise by 11 per cent as exports of readymade garments are likely to pick up following the easing of the temporary supply constraints affecting imported fabrics.

Imports are projected to rise by 11.5 per cent in 1995 with higher imports of fabric for the readymade garment industry and increased Imports of capital goods and intermediate goods such as cement and fertiliser.

These developments in export and imports will result in a small increase in trade deficit and that the current account deficit is forecast to rise to 2 per cent of GDP in 1995 despite the continued rise In the inflow of worker's remittance.

The report, however noted that with improved aid disbursements. it is expected that there would be an overall surplus and a rise in foreign reserves to 3 billion US dollars by the end of 1995.

The reserve was 2.8 billion

dollars in 1994.

The report said one of the kev challenges for the gov-einment was an overhaul of the civil service and public administrations structure to strengthen accountability and transparency. Another major challenge is to secure a substantial Increase in private Investment. The financial system is another area in which reform Is necessary if private investment is to be promoted, the report noted.