Seven Companions
Saifur Rahman introduced VAT to increase government revenue
M Saifur Rahman (6 October 1932 – 5 September 2009). Image: Agamir Somoy.
In Bangladesh, the record of presenting the national budget the highest number of times—12 times—is held by a single person, M. Saifur Rahman. This is also an example of his long-term contribution to the country’s economy.
He served twice as finance minister. During his tenure, several major economic reforms were implemented in Bangladesh. In the 1990s, when neoliberalism was spreading across the world, he integrated Bangladesh’s economy into globalization through trade liberalization.
His policy measures were significant. In 2003, he allowed the exchange rate of the taka and the US dollar to float in the market. He also implemented major reforms in the banking sector. To increase government revenue, he introduced Value Added Tax (VAT).
His early life was eventful. After graduating from the University of Dhaka in 1953, he went to London to study at the Institute of Chartered Accountants in England and Wales. Later, in 1962, he received advanced training in management in the United Kingdom. He also specialized in financial and monetary policy and development economics.
Saifur Rahman served as a member of the Pakistan National Pay Commission in 1969. He was the only member nominated from the private sector. He also served as a member of the Bangladesh National Pay Commission in 1973 and 1975. On the request and encouragement of Shaheed President Ziaur Rahman, he joined the cabinet of President Abu Sadat Mohammad Sayem as Commerce Advisor on 26 December 1976. This marked the beginning of his rise as a future finance minister. Later, after the national election of 1979 when the BNP formed the government, he was appointed Finance Minister in President Ziaur Rahman’s cabinet.
He was also active on the international stage. He led Bangladesh delegations in various global platforms, including UNCTAD, the Economic and Social Commission for Asia and the Pacific, and the Commonwealth. He also served as a governor for the World Bank, ADB, IDB, and IFAD. His international recognition was further reflected when he chaired the 50th anniversary conference of the IMF and World Bank in Madrid in 1994.
M. Saifur Rahman died in a road accident in Brahmanbaria on September 5, 2009.
