Prof Rehman Sobhan, chairman of the Centre for Policy Dialogue (CPD), said at a discussion on Monday that global lenders like the International Monetary Fund (IMF) will not be able to help Bangladesh if its forex reserves dropped below the $10 billion-mark.

Bangladesh's economic situation is still better than that of Sri Lanka considering the higher remittance and export earnings, he also said, during an event on "Conversation with Professor Rehman Sobhan" organized by the Economic Reporters Forum at its office in Dhaka..

He, however, said he could never think that Bangladesh's forex reserve would fall below $30 billion, whereas the amount is now hovering below $20 billion.

If it continues to fall and plunge below $10 billion, the situation would be very bad for Bangladesh and then the IMF will not come forward for the country, the economist said.

To prevent this, Prof Sobhan recommended launching import restrictions considering the priority of products.

Rehman Sobhan said, remittance or expatriate income is decreasing in the country, but that does not mean that expatriate income has actually decreased. Instead of coming through official channels, the expatriate income is coming through informal channels, the main medium of which is hundi.

That is, instead of being deposited in banks, it is being deposited in Hundi, which is being deposited outside Bangladesh, he commented.

The CPD chairman also mentioned that it has become convenient for those who smuggle money abroad.

The leading economist further said that there has been a big change in the culture of the country's financial sector.

Non-repayment after borrowing has become the norm. It is not that large-scale industrialists are doing it, rather those who are doing these things are introducing themselves as big politicians, he added.

Compared to many countries, Bangladesh has done better in foreign debt management, the veteran economist said.

Prof Rehman Sobhan also said that the amount of credit from domestic sources is increasing in Bangladesh. "But we are doing well in foreign debt management. This is because Bangladesh has always been proactive in repaying its foreign debt."

Referring to the increasing income disparity in the country, the CPD chairman recalled how he wrote about one country and two economies during the Pakistan period.

"Even though there is economic progress in the country, not everyone is getting the benefits equally." He commented that sustainable development is not possible by maintaining such income inequality.

He said policymakers have to decide right now whether to import BMWs or import eggs or fertilizers.

Rehman Sobhan said that the reserve of Bangladesh was $45 billion. From there it decreased to $24 billion.

"Now Bangladesh Bank says it is at $18 billion. Even if the reserves are $10 billion, policymakers will have to control imports to save the reserves."

He thinks that the current government has done a good job in improving the electricity situation, but also questioned why the government is paying the capacity charge for the leased power plant even after 15 years.

The government should get out of the practice, he added.