The government has also decided to sell out 26pc shares of the bank for $128 million against the backdrop of increased government borrowing from banks amid a fund crisis for Annual Development Programme (ADP) implementation.

Sources said the government has already taken steps for some reforms, which are prerequisites for getting the World Bank fund, which is going to resume its mission's visit to Bangladesh soon. The visit has been suspended since November last year amid a volatile political situation, the sources added.

A high official of the finance ministry said the government is hopeful of getting $200 million as the fourth instalment of the development support credit, $100 million as education sector support credit and another $40 million as railway sector policy support from the World Bank.

Another official said the government had informal talks with the World Bank for release of the funds as a number of major conditions for the aid have already been fulfilled or under process.

Funds for the development support credit and railway reform policy might be released next month while there is a chance of getting the education sector support credit by the end of the current fiscal, the sources said.

"Privatisation of Rupali Bank is in the final stage and steps will be taken soon for corporatisation of four nationalised commercials banks," a finance ministry official said terming the moves as major conditions for the World Bank fund.

He said the donors are also happy with the move to separate the judiciary from the executive branch of the government and about the move to revitalise the Anti-corruption Commission (ACC).

About the sale of Rupali Bank, finance ministry sources said the government agreed to sell the bank's 67 percent share to the Saudi prince for $330 million. Later, the buyer offered the government to buy another 26 percent share for $128 million. "The government is considering the proposal positively," an official said.

He said a deal might be signed next month with the Saudi prince on selling Rupali Bank, if the government agrees with his proposal.

The Bangladesh Bank's recently released economic policy statement also asked the government to take immediate steps to sell Rupali Bank.

The central bank sources said the government was compelled to borrow a large amount of money from the banking sector in recent times due to declining foreign aid and low revenue earning.

The government's total borrowing from the banking sector was Tk 6,300 crore from July 1, 2006 to January 9, 2007, sources said adding that the bank borrowing limit was fixed at Tk 5,434 crore for the entire fiscal in the budget.

About the ADP implementation, sources said only 20 percent of the ADP has been implemented in the first five months of the fiscal. A source however pointed out that government borrowing from banks increased despite low implementation of ADP.

He said the GDP growth will also be affected with the slow pace of ADP implementation and for this the interim government has emphasised on increased ADP implementation during the remaining period of the fiscal, requiring more money.

The chief adviser talked on the matter while addressing the secretaries on Tuesday where he said the government will not tolerate any dilly-dallying in ADP implementation.

The finance ministry sources said the government is now contemplating to cut some less important projects of the current fiscal and to provide money for more important projects.

"The government will review the ADP next week to identify the most important projects," a source said.

Finance Adviser Mirza Azizul Islam held separate meetings with the planning ministry and the External Relations Division (ERD) officials on Wednesday and discussed the progress of ADP implementation of the current fiscal.