STAFF CORRESPONDENT

The falling foreign exchange reserves and the ever-rising defaulted loans are very concerning for the economy, and the government should respond fast to avoid a looming crisis, eminent economist Prof Rehman Sobhan said yesterday.

The reserve is falling continuously, and if it continues to fall below $10 billion, the situation will be worrying and the IMF may not be able to help Bangladesh in that case, he said.

“Although I did not believe that the foreign exchange reserve may fall below $30 billion, it has already come down to $18 billion, which was $45 billion previously,” said Prof Rehman, also chairman of Centre for Policy Dialogue.

Bangladesh’s economy is still better than that of Sri Lanka, considering the former’s higher remittance and export earnings capacity, but the government should not think that Bangladesh is unlikely to experience such a dire situation, he said.

He was speaking at an event titled “Conversion with Professor Rehman Sobhan” organised by Economic Reporters Forum at its office in the capital.

Given the falling reserve, the government should introduce import

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