[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Expatriates sent $1.78b in remittances in first 19 days of April

The strong inflow of remittances has continued into April, with expatriates sending $1.78 billion in the first 19 days of the month. This follows a record-breaking $3.29 billion received in March, reports UNB. Bangladesh Bank’s latest update revealed that Bangladeshi expatriates have sent a

thefinancialexpress.com.bd

Expatriates sent $1.78b in remittances in first 19 days of April
FE Online Desk
Published :
Apr 20, 2025 18:39
Updated :
Apr 20, 2025 18:39

The strong inflow of remittances has continued into April, with expatriates sending $1.78 billion in the first 19 days of the month.

This follows a record-breaking $3.29 billion received in March, reports UNB.

Bangladesh Bank’s latest update revealed that Bangladeshi expatriates have sent around US$ 1.72 billion in inward remittance in 1-19 days of April.

In April last year, the expatriates sent $2.04 billion in remittances, while in the 19 days of April this year, they sent $1.78 billion in remittances.

Accordingly, Bangladesh received $90.45 million in remittances so far in each day of April.

The state-owned commercial banks received a total of $639.7 million, two specialised banks received $90.26 million, private banks received $985.42 million, and foreign banks received $3.35 million.

Among the banks, Sonali Bank PLC received the highest amount, $278.09 million; Islami Bank Bangladesh PLC received the second highest amount, $266.88 million; and Agrani Bank PLC received the third highest amount, $183.41 million, in 19 days of April.

The expertise sent $21.77 billion in remittances in the 9 months (July-March) of the current fiscal year, FY2024-25. On the other hand, remittances of $17.07 billion were received in the first 9 months of the previous FY2023-24.

March $3.29 billion

February $2.53 billion

January $2.19 billion

December $2.64 billion

November $2.2 billion

October $2.39 billion

September $2.4 billion

August $2.22 billion

In July $ 1.91 billion​

 

[Saif]

Economic reforms: Govt initiatives not sufficient

The White paper drafting committee and the taskforce on redefining economic strategy, formed by the interim government with the aim of pursuing economic reforms, have submitted their respective reports in due time. These efforts have been widely appreciated. However, the lack of effective...

en.prothomalo.com

Economic reforms: Govt initiatives not sufficient
Editorial Desk
Published: 20 Apr 2025, 20: 24

The White paper drafting committee and the taskforce on redefining economic strategy, formed by the interim government with the aim of pursuing economic reforms, have submitted their respective reports in due time. These efforts have been widely appreciated. However, the lack of effective government action in implementing the recommendations of the White paper committee has prompted expressions of dissatisfaction from the committee’s chair, Debapriya Bhattacharya.

Speaking at the ‘Sixth Bangladesh Economics Summit-2025’ on Thursday, he noted that the interim government has suspended the eighth five-year plan and other medium-term plans initiated by the previous (Awami League) administration. However, no alternative medium-term plan has been adopted in their place. As a result, investors are lacking confidence. They are also uncertain as to whether the current policy measures will be sustained in the future.

There are two issues here — first, no new plan has been adopted to replace the interim plan of the former government that was scrapped. Second, it is uncertain whether the policies introduced by the current government will remain in place in the future.

The white paper committee’s report recommended a medium-term plan spanning at least two years. Debapriya Bhattacharya indicated that the government’s failure to adopt such a plan has negatively affected private sector investment. Investment is the principal driving force of a country’s economy. Without investment, employment opportunities will not be created and production across all sectors- industry, agriculture and more will inevitably decline.

Naturally, businesspeople want the government's policies and plans to remain consistent despite changes in power. At the recently held investment summit, organised with much fanfare by the government, businesspeople also raised these concerns.

We believe there is ample reason to question why the recommendations of the White Paper Drafting Committee and the Task Force on Redefining Economic Strategy are not being implemented. If the government chooses not to act on a committee’s recommendations, it must also provide an explanation to the public.

According to the White Paper Committee’s report, a staggering USD 2,340 billion has been laundered abroad during the tenure of the Awami League government. Furthermore, an estimated amount ranging from BDT 1.61 trillion (1 lakh 61 thousand crore) to BDT 2.80 trillion (2 lakh 80 thousand) was exchanged as bribes within government projects. These findings are expected to aid in bringing corrupt individuals to justice. Legal action has already been initiated against several individuals.

The White Paper Committee recommended several measures to ensure economic stability, including the formulation of the budget framework for the 2025–26 fiscal year, planning for the 2025–27 period, setting priorities for reform and establishing strategies for the country's graduation from LDC status. However, government actions in these critical areas remain largely invisible.

After taking responsibility, the interim government has made progress in restoring discipline to the financial sector. Nonetheless, there remains a lack of effective and sustainable initiatives aimed at revitalising the broader economy. Due to the decrease in private sector investment, employment opportunities are not expanding—despite an annual influx of 2.4 million (24 lakh) young individuals entering the labour market.

There is also growing public concern regarding the upcoming 2025–26 fiscal budget. In the past, successive governments have followed a policy of favouring influential groups. Should the interim government continue along the same path, it will offer little in terms of positive outcomes for the wider population. If the government opts to impose the tax burden disproportionately on ordinary citizens, without expanding the tax base, inflation will remain unchecked. The situation witnessed during the last Ramadan should not be accepted as an unchangeable reality. Already, prices of essential commodities are once again on the rise and immediate action is necessary to stop this trend.

It must be remembered by policymakers that without economic reform, political reform cannot be sustainable. It is therefore expected that they will take a proactive role in implementing the recommendations set forth by the white paper committee and the economic strategy taskforce.​

 

[Saif]

https://thefinancialexpress.com.bd/views/should-bangladesh-create-a-sovereign-wealth-fund

Should Bangladesh create a sovereign wealth fund?
Syed Abul Basher
Published :
Apr 22, 2025 23:03
Updated :
Apr 22, 2025 23:03

The answer is undoubtedly yes. A sovereign wealth fund (SWF) is a state-owned investment vehicle designed to manage national assets strategically for long-term wealth creation and intergenerational equity. In many ways, SWFs function is similar to how households or families approach long-term investments in housing, stocks, or other financial assets seeking to build wealth over time through strategic asset allocation rather than focusing solely on immediate liquidity.

One might ask why do we need a SWF when we have foreign exchange reserves in the central bank? This is where the function of a SWF becomes clear. Usually the foreign exchange reserves are invested in low-risk, low-yield liquid bonds, so that they can be sold quickly in times of need. This is the 'liquidity' purpose of foreign exchange management, just like keeping money in a current account and withdrawing it on demand. Whereas there are no rigid rules for designing a SWF, countries can invest their SWF in equities or in specific projects. For example, recently Singapore's wealth fund Temasek has invested in India's Haldiram, a multi-national fast-food restaurant chain. This is the 'investment' purpose of the SWF, which serves a different role than that of foreign exchange reserves whose main function is liquidity.

So, where would the money come from, usually in US dollars, to create such a SWF for Bangladesh? As a starter, we could create a SWF with 10 billion dollars, which would provide a meaningful foundation for future growth. There are several possible avenues which we could explore to raise the initial 10 billion dollars. First, the government (current and future) could work hard to recover partial money stolen from Bangladesh over the last one and half decades. Suppose this attempt generates 3-4 billion dollars. Second, the government could purchase 3-4 billion dollars from the inflows of remittance and export earnings. Another 2-3 billion can be obtained by strategic selling or leasing of public assets inside the country (for example, underutilised government land, stakes in state-owned enterprises, or infrastructure concessions). These sources can collectively provide a solid starting pool. There are of course other imaginative ways of designing funding modalities.

Now, let's consider what could happen if we manage to raise 10 billion dollars to create the first SWF for Bangladesh. Let's imagine what the power of mathematical compounding could do even to this modest initial investment over time. If managed effectively, the proposed $10 billion fund could transform the national finances over decades. At an annual return of 8 per cent, a $10 billion Bangladesh SWF could grow to $46.6 billion in 20 years. At 10 per cent annual returns, it would reach $67.3 billion, and at 12 per cent, nearly $97 billion. An annual return of 10 per cent is not unrealistic, considering that the S&P 500 has delivered similar total returns over the past two decades. However, targeting such returns requires calculated exposure to higher-volatility assets. A phased investment strategy-beginning with stable infrastructure projects and gradually expanding into global equities-could help manage both risk and learning curves. For Bangladesh's $460 billion economy, these figures represent significant potential. In 40 years, assuming consistent 10 per cent returns, the fund could reach approximately $453 billion-nearly equivalent to Bangladesh's current GDP. This potential for wealth creation cannot be ignored, especially given the country's development needs and demographic challenges.

With these possibilities in mind, why not consider creating a SWF seriously? Before moving further, let's address some common questions about this proposal. One likely concern could be that when Bangladesh's current official reserves are hovering between $20-25 billion, covering roughly four months of imports, establishing a SWF seems premature.

This concern is understandable, but it fails to recognise several important considerations. First, the traditional approach of holding all reserves in low-yielding sovereign bonds represents a significant opportunity cost. Even allocating a small portion of these assets to a professionally managed SWF could generate substantially higher returns over time without materially affecting the country's ability to weather short-term financial shocks.

Moreover, a SWF serves different strategic purposes than foreign exchange reserves. Whereas reserves primarily function as insurance against balance of payments crises, a SWF acts as an investment vehicle for long-term wealth creation. These complementary roles suggest that both should exist in parallel, rather than viewing them as mutually exclusive alternatives.

Second, critics might argue that usually only countries with net positive savings such as Norway or the UAE can create such funds, whereas Bangladesh is a net debtor country. But being cash-poor is not a valid financial justification for avoiding the creation of a SWF. Years of academic research have shown that even very low-income households actively save and invest despite limited resources, often prioritising asset building alongside managing debt.

Although Bangladesh is cash-constrained, it is not poor in assets. Bangladesh's current public debt stands at approximately 40 per cent of GDP, but the government owns significant land, buildings, state-owned enterprises, natural resources, and infrastructure that could be strategically monetised. Bangladesh ranks favourably in terms of agricultural land fertility, with the Ganges-Brahmaputra delta creating some of the most productive soil in the world. The Bay of Bengal offers maritime resources that remain largely untapped. The country's strategic location between South and Southeast Asia gives it geographical value that cannot be calculated on standard balance sheets. The government could monetise a portion of these dormant assets, putting them to work generating returns far superior to the meager yields of sovereign bonds. This asset monetization strategy addresses the apparent paradox of creating a wealth fund amid limited liquidity.

Another key challenge is the risk of mismanagement. A major concern around setting up a SWF in Bangladesh is the risk of corruption or poor management. Given the country's track record of financial misconduct in both public and private sectors, such concerns are understandable. High-profile cases like Malaysia's 1MDB scandal, where about USD 4.5 billion was misused, serve as clear warnings.

Yet, despite these risks, many countries have succeeded. It's worth noting that today over 200 SWFs operate across more than 80 countries, most without major scandals. Botswana's Pula Fund, launched in 1994 with diamond revenues, is a good example. Despite being a middle-income country, Botswana has managed the fund well, using it to support long-term stability.

Norway established its fund in 1990 with a modest amount of $300 million, which now stands at $1.7 trillion! Singapore launched Temasek in 1974 during a period of uncertainty following its separation from Malaysia. These examples show that the key requirement isn't having a large fiscal surplus-it's the willingness to treat land, resources, and people as long-term assets. Wealth is not something to wait for; it's something to build through timely decisions. Doing nothing carries its own risk-especially in the face of inflation and underutilised savings.

The proposed SWF must be guided by professional investment judgment, not held back by bureaucratic red tape. Fund managers should follow private sector standards, free from the overly cautious mindset often found in central banks and other public institutions. This requires a governance structure that ensures both independence and accountability. A dual-key model, where investment decisions require joint approval from fund managers and a legislative oversight body, could balance autonomy with public trust. To attract skilled professionals, the fund should offer competitive pay, performance-based incentives, and the freedom to operate within clear strategic guidelines. Bangladesh can look to successful global models while putting in place safeguards like independent audits (e.g., IMF-reviewed), oversight committees, and transparent reporting. These measures are key to ensuring the fund serves the country's long-term interests.

Starting a SWF now, even on a small scale, gives Bangladesh the chance to build the skills, systems, and experience needed for long-term success. Delaying until reserves are "sufficient" only pushes back learning and growth. Meanwhile, parking savings in low-yield bonds while paying higher interest on foreign debt locks the country into a losing cycle. An SWF won't solve all problems overnight, but it can help shift the mindset from short-term spending to long-term asset-building. And the right time to begin is now.

Syed Abul Basher is an economist and researcher.​

 

[Saif]

BD receives record $23.75b so far this fiscal

Bangladesh is poised to see a new record in yearly remittance receipt as the country has already received US$23.751 billion in less than 10 months of this fiscal, in much-needed props to its forex reserves. And this accumulated remittance figure is 96 per cent of the recorded remittance in

thefinancialexpress.com.bd

Remittance rebound in higher gear
BD receives record $23.75b so far this fiscal
Less-than-10-month figure 96pc of entire FY'21 receipt

JUBAIR HASAN
Published :
Apr 23, 2025 00:32
Updated :
Apr 23, 2025 00:32

Bangladesh is poised to see a new record in yearly remittance receipt as the country has already received US$23.751 billion in less than 10 months of this fiscal, in much-needed props to its forex reserves.

And this accumulated remittance figure is 96 per cent of the recorded remittance inflow of $24.777 billion registered in FY'21, officials and bankers said Tuesday.

Monthly receipt also continues on a steady rise. According to the latest data with Bangladesh Bank, the country's central bank, Bangladeshi citizens working abroad sent in remittances equivalent to $1.97 billion in the first 21 days of this month, which is 40 per cent higher of the corresponding period of the last fiscal.

With the latest, the country has so far received $23.751 billion in this current fiscal and is now just $1.03 billion away from setting a new record that is expected to be achieved by maximum early next month (May).

Since the financial year 2020-21, according to the official data, the $450-billion economy had earned $21.03 billion, $21.61 billion and $23.91 billion in FY'22, FY'23 and FY'24 respectively.

Seeking anonymity, a BB official said the rising trend in remittance continued following stability in exchange rate over the last several months.

Simultaneously, says the official, operation of the informal channels for remittance remained inactive because of close regulatory watch since the changeover in state power after the July-August mass uprising.

"These factors keep alluring the remitters into sending more money back home through banking channel. As a matter of fact, the remittance inflows came at such a pace never seen before," the central banker told the FE, on an upbeat note about the change on the foreign-exchange front.


Citing the current trend in inbound remittance, he said the remitters sent $93 million daily on average. With this pace, the receipt is expected to cross $24-billion mark within this month and break the record maximum by early next month.

Talking to the FE, managing director and chief executive officer of Mutual Trust Bank (MTB) PLC Syed Mahbubur Rahman said the banking industry continued receiving huge volumes of remittance in recent months, which is a "good sign" for the economy in the current macroeconomic context.

This upturn in remittance is not only helping bolster the country's foreign-exchange reserves but also enhancing banks' capability to meet their overseas payment obligations, the experienced banker said.

Dr M Masrur Reaz, an economist and chairman of Policy Exchange of Bangladesh, says cross-border siphoning off money has significantly declined after the latest mass uprising and it naturally decreased the supply and demand in informal channel.

On the other hand, the exchange rate remained fairly stable for the last few months which helps cut speculation on the market. "These twin factors are basically encouraging the remitters to send more money back home," says the economist.

The rising supply of foreign currencies is very important for BoP or balance of payments and currency stabilisation. It also helps increase consumption, which will help vibrate the economy in the coming days, he adds.

"This increase (forex) helps BB bolster its foreign-currency reserves, which will be critical for full normalisation of import. Ultimately, it supports the inflation-combating drives of the interim government," Mr Masrur explains the knock-on economic effect of remittance rises.​

 

[Saif]

It’s high time to overhaul our tax system

Existing tax system has become a major hurdle to Bangladesh’s fiscal progress

www.thedailystar.net

It’s high time to overhaul our tax system
Existing tax system has become a major hurdle to Bangladesh’s fiscal progress

VISUAL: STAR

According to a recent report by the Centre for Policy Dialogue (CPD), Bangladesh lost an estimated Tk 226,236 crore in potential revenue due to tax evasion and avoidance in FY 2022-23. This is an extremely troubling finding. While it is generally known that tax irregularities are widespread in Bangladesh, the extent of the resultant loss, as estimated by the CPD, is staggering. To put it into perspective, the lost amount from FY23 could have funded the construction of approximately seven metro rail lines, provided each cost as much as the revised budget of Tk 33,472 crore for Metro Rail Line-6 connecting Uttara to Kamalapur.

In other words, had the National Board of Revenue (NBR) managed to collect some portion of the Tk 2.26 lakh crore lost to tax evasion, it could have easily met its revenue target for that year—which it fell short of by Tk 44,728 crore, according to provisional data. Therefore, the fact that the NBR has a history of missing its revenue targets is clearly not a fait accompli, but rather something that can be rectified.

According to the CPD report, corporate tax evasion alone accounted for roughly half of the total loss in FY23—about Tk 113,118 crore—highlighting a concerning trend of rising evasion since 2011. The estimated loss in 2012 was Tk 96,503 crore, which surged to Tk 133,673 crore by 2015. According to CPD, corruption and a range of structural issues, including high tax rates, weak enforcement, and a labyrinthine legal framework, have been fuelling this rampant tax evasion.

For instance, nearly half of the firms surveyed in the study alleged that they were asked for bribes by officials while seeking tax-related services in FY23. Additionally, 40 percent of surveyed companies reported problems when adjusting their tax refunds. Moreover, 79 percent of firms pointed to a lack of accountability among tax officials, while 72 percent cited widespread corruption in the tax administration. Furthermore, 65 percent of businesses reported persistent disputes with tax officials over the calculation of their payable tax amounts. Another controversial factor that deserves scrutiny is the policy on tax expenditure and incentives. According to CPD, Bangladesh's current tax incentive structure is deeply entangled with political interests, rather than being merit-based and time-bound.

Clearly, much work is needed to improve our overall tax system. In fact, the entire structure appears to require a significant overhaul. Firstly, the tax submission process must be fully digitalised, with a unified system of financial transactions to ensure that every transaction is traceable and verifiable, thereby creating a barrier against corruption and fraud. Secondly, the NBR must significantly expand its corporate tax net, raising the proportion of tax-paying firms to at least 59 percent of registered companies—up from the current estimate of just 9 percent. Without such transformative reforms, Bangladesh's fiscal progress will remain severely hampered.​

 

[Saif]

How BD can withstand India's transshipment withdrawal

The old proverb "when life gives you lemons, make lemonade" inspires optimism and a proactive approach in the face of adversity. Even though it is viewed as a simple encouragement at personal level, history suggests that adversity can indeed be the mother of invention even on a national scale. Fo

thefinancialexpress.com.bd

How BD can withstand India's transshipment withdrawal
Atiqul Kabir Tuhin
Published :
Apr 23, 2025 23:42
Updated :
Apr 23, 2025 23:42

The old proverb "when life gives you lemons, make lemonade" inspires optimism and a proactive approach in the face of adversity. Even though it is viewed as a simple encouragement at personal level, history suggests that adversity can indeed be the mother of invention even on a national scale.

For Bangladesh, unexpected challenges imposed by its neighbour, India, have paradoxically spurred domestic growth and self-reliance in key sectors. Take the example of India's 2014 ban on cattle exports, which catalysed a surge in local cattle rearing, ultimately leading Bangladesh towards self-sufficiency in meat production and empowering hundreds of thousands of farmers and traders. Similarly, India's onion export restrictions in 2020, even though initially caused a record price hike, ultimately led to a notable rise in Bangladesh's domestic onion production in the following years.

Now, with India abruptly halting Bangladesh's transshipment facility-which had enabled the export of goods to third countries via Indian airports-Bangladeshi apparel exporters, particularly those dealing in fast fashion and seasonal wear that require short lead times, are left without a fast and cost-effective export route.

It is worth mentioning that the transshipment facility was introduced in 2020 as part of a bilateral agreement, and Bangladeshi exporters have been using it by paying a certain fee. Clearly, it had been a win-win arrangement for both countries, and India stands to gain no apparent benefit from withdrawing the facility. In fact, the move is widely seen as politically motivated as one Indian news outlet reports "How India Is Making Bangladesh's Yunus Pay for Cozying Up With Pakistan, China."

However, there is little reason for Dhaka to be unnerved by India's unilateral decision, as the volume of Bangladesh's RMG exports routed through the Indian transshipment facility is negligible compared to its total volume of exports. And, Bangladesh is well-positioned to overcome this challenge through its own arrangements.

Although the seaports are the primary gateway for Bangladesh's exports and imports, there is an annual demand to export over 200,000 tonnes of garments by air, which is growing by the year. This demand primarily stems from garments produced for specific seasons or under the fast fashion segment, where trends change rapidly. Products under this segment are treated as perishable goods as delayed delivery can result in order cancellations. Air shipment is also vital for the delivery of agricultural goods where time is of the essence.

Apparel makers are under constant pressure to reduce lead times. However, bureaucratic hurdles which causes delay in custom clearance as well as limited storage facility, a lack of adequate scanning facilities, and frequent equipment failures - such as scanning machines frequently going out of order-create significant obstacles to smooth export processes. These challenges hinder manufacturers' efforts to quickly deliver products.

Moreover, due to higher jet fuel prices along with higher taxes, ground handling fees, and other airport charges, it has often been more economical for exporters to transship goods via Indian airports like Kolkata or Delhi rather than directly through Dhaka.

Despite this, of the annual 200,000-tonne air shipment demand, approximately 80 to 85 per cent was already being handled through Hazrat Shahjalal International Airport (HSIA), with only 15 to 20 per cent previously routed via Indian airports under the transshipment arrangement. To put this into perspective, between January 2024 and March 2025, just over 34,900 tonnes of garments-worth $462 million -were shipped through India. For a country that exports over $40 billion worth of garments annually, managing this small portion of redirected shipments is not supposed to be a big deal.

As a matter of fact, there is a silver lining in this disruption. The authorities here in Bangladesh started considering it is an opportunity for Bangladesh to enhance its air-cargo shipment capacity, which will pave the way for greater control over its supply chain. Needless to say, it would also greatly boost government's revenue. The authorities have already decided to begin air cargo operations from both Sylhet and Chattogram airports, with air shipment from Sylhet set to commence on April 27.

Meanwhile, efforts are being ramped up to accelerate the operation of the third terminal at HSIA by as early as October this year. The third terminal is expected to boost HSIA's cargo handling capacity to 546,000 tonnes annually-a significant increase from the current capacity of 200,000 tonnes handled by Terminals 1 and 2. That means the third terminal will triple the airport's export cargo handling capability.

Although a "soft inauguration" of the terminal was held by the then-Awami League government in October 2023 ahead of the national election, it was nothing but a farce. The terminal is yet to become operational. The latest report suggests that 98 per cent of the terminal's construction is complete, with only exterior infrastructure works remaining, which are going on in full swing. Several operational components-including equipment installation, calibration, and testing-are being carried. The Civil Aviation Authority is currently in talks with the Japan International Cooperation Agency (JICA) regarding ground-handling services. The authorities are hopeful of completing these tasks by June of this year. Once completed, the terminal could be a game changer for the country's aviation sector.

So, while India's withdrawal of the transshipment facility may initially pose challenges and raise export costs to some extent, with foresight, policy backing, and strategic investment, Bangladesh can transform this setback into a catalyst for boosting air cargo logistics and port infrastructure. Bangladesh must seize this moment by streamlining regulatory reforms, reducing costs and leveraging its expanding airport capacity.​

 

[Saif]

Tradable savings instruments

The idea of making government’s savings instruments tradable is quite interesting. Its practical benefits are likely to be wide, adding a new dimension to private savings and even the country's economy. Right now the money invested in savings tools has little opportunity to roll and speed up

thefinancialexpress.com.bd

Tradable savings instruments
FE
Published :
Apr 23, 2025 23:44
Updated :
Apr 23, 2025 23:44

The idea of making government’s savings instruments tradable is quite interesting. Its practical benefits are likely to be wide, adding a new dimension to private savings and even the country's economy. Right now the money invested in savings tools has little opportunity to roll and speed up the process of 'money begets money' other than contributing to government fund for its expenditure. If the savings instruments like sanchaypatras of different categories become tradable in the secondary market, their dynamic provisions may have a multiplier effect on the bourse, private savings and the economy in general. Already popular, sanchaypatras will be more attractive because of the flexibility and dynamism the Finance Division's initiative will add to those instruments. People will be able to sell those in time of emergency and once the exigency is met, they can buy instruments similar to the ones they sold instead of going the whole hog of opening a fresh savings tool with the bank.

Another feature of immense merit with highly practical use will be its collateral value. Currently, fixed deposit receipt (FDR) enjoys the mortgage value and can be used as collateral for obtaining loan but sanchaypatras do not enjoy the same status. This is plainly contradictory. FDR is savings for a certain period and the agreement is made between an account holder and the bank concerned. If the bank collapses, there is no guarantee that the depositors will get their money back. In case of sanchaypatra, the government or the state is the guarantor of the investment and the money with interests has to be paid back unfailingly. So, the use of savings instruments as collateral is more than justified. How much loan against those can be sanctioned is a matter that can be meticulously worked out. Understandably, the nitty-gritty will be specified in clear terms to avoid confusion and loan default.

In this context, a perusal of the total amount of the savings certificates sold in 2024 and the repaid amount present a clear picture of depositors' financial constraints. By issuing savings certificates, the country's banking channel had an infusion of Tk788.47 billion while the repaid amount stood at Tk999.72 billion, registering a decline in sale by Tk211.24 billion. The reason is not far to seek. Inflation and ill health of the economy compelled more people to encash their savings instruments in order to stay afloat. Many of the savings account holders did so prematurely. Had there been the opportunity to sell savings tools in the secondary market or receive loans against those, many of them would not have encashed their sanchaypatras.

Sure enough, trading of government's savings instruments in the secondary market is a smart way of mobilising government fund. More importantly, the dynamism it will lend to money is likely to make idle money's use productive. Small entrepreneurs can make the best use of this limited but highly useful fund if the commercial aspect can be made compatible with investment in their small and medium enterprises (SMEs). Mobilisation of fund alone without its productive use and circulation in manufacturing units, businesses and market does not make an economy dynamic and strong. The range and scope of government's treasury bills and bonds in expediting such economic activities at the grassroots level can as well be widened to complement such an effort.​

 

[Saif]

IMF hints at Bangladesh’s economic recovery

Bangladesh’s economy is showing signs of recovery, with the latest forecast from the International Monetary Fund (IMF) projecting a significant upturn.

en.prothomalo.com

IMF hints at Bangladesh’s economic recovery
UNB Dhaka
Published: 23 Apr 2025, 16: 53

Bangladesh’s economy is showing signs of recovery, with the latest forecast from the International Monetary Fund (IMF) projecting a significant upturn.

In its World Economic Outlook released on Tuesday night (Washington time), the IMF projected a GDP growth of 3.8 per cent for Bangladesh in the current fiscal year of 2024-25.

The outlook further anticipates an increase in growth to 6.5 per cent in the following fiscal year of 2025-26.

The report was unveiled on the second day of the World Bank-IMF Spring Meetings, currently taking place in Washington, USA.

Alongside global trends, the IMF updated country-specific data in this outlook. It projects inflation in Bangladesh to remain at 10 per cent.

The country has been grappling with persistent inflationary pressure over the past two years.

According to the Bangladesh Bureau of Statistics (BBS), inflation stood at 9.35 per cent in March, with an annual average of 10.26 per cent over the past year.

The Awami League government initially targeted a GDP growth rate of 6.75 per cent when it presented the budget for FY 2024-25 in June.

But, the interim administration recently revised the target downward to 5.25 per cent, citing ongoing financial challenges, business stagnation, and political instability following the change in government.

Earlier this month, the Asian Development Bank (ADB) projected a GDP growth of 3.9 per cent for Bangladesh this fiscal year—slightly higher than the IMF’s updated estimate.

Globally, the IMF expects average GDP growth to be 2.8 per cent, while the average for Asia is forecast to be 4.5 per cent.

A 15-member Bangladesh delegation, led by finance advisor Dr Salehuddin Ahmed, is participating in the Spring Meetings, which began on 21 April and will continue until 26 April.​

 

[Saif]

Unlocking new horizons for BD’s economic future

The Bangladesh Investment Summit 2025, held from April 7 to 10 in Dhaka, marks a defining moment in the nation's economic trajectory. As the renowned business magnate Richard Branson once said, "Business opportunities are like buses, there's always another one coming." The summit, organised by the

thefinancialexpress.com.bd

Unlocking new horizons for BD’s economic future
Serajul I Bhuiyan
Published :
Apr 24, 2025 22:14
Updated :
Apr 24, 2025 22:14

The Bangladesh Investment Summit 2025, held from April 7 to 10 in Dhaka, marks a defining moment in the nation's economic trajectory. As the renowned business magnate Richard Branson once said, "Business opportunities are like buses, there's always another one coming." The summit, organised by the Bangladesh Investment Development Authority (BIDA), demonstrated that Bangladesh is not only ready to board the global economic bus but is driving it forward with vigour and vision. With over 3,500 participants, 130 panellists and experts, and 150 formal meetings, the summit revealed the vast investment potential of Bangladesh, attracting foreign direct investment (FDI) and positioning the country as a rising player in the international economic arena. This article seeks to explore the key outcomes of the summit, analysing its impact on FDI inflows and its potential to drive sustainable economic development, while shedding light on how Bangladesh can capitalize on this momentum to foster long-term growth and opportunities for both local and international investors.

KEY TAKEAWAYS FROM THE BANGLADESH INVESTMENT SUMMIT 2025: Chaudhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA, emphasised the pivotal role that events like the Bangladesh Investment Summit play in shaping the country's investment climate. He highlighted the importance of making such summits regular occurrences, ideally held annually, to keep pace with global developments and continue reinforcing Bangladesh's image within the international business community. While Harun acknowledged that the true impact of the summit would unfold over time, he expressed enthusiasm for the energy and optimism generated by the participants, assuring that similar conferences would continue to be organised to build upon the momentum created.

One of the summit's most notable successes was the formal announcement of two substantial investments-one from Honda Industry and the other from ShopUp-totalling a remarkable Tk 310 billion. In addition, the signing of six memorandums of understanding (MoUs) solidified the potential for future collaborations, signalling a bright future for business partnerships between Bangladesh and foreign investors.

A VISIONARY CENTRE OF SUSTAINABLE FDI AND WORLD GROWTH: Under the visionary leadership of Dr Muhammad Yunus, Bangladesh is a highly promising FDI country with an inclusive culture of sustainable economic growth, social change, and international integration. Yunus's social business and anti-poverty vision is in accord with the global community's increasing interest in morality-enabling investment and sustainable development. His leadership provides investors with unique parameters of stability and transparency that are needed to maintain investor confidence.

Under Yunus's leadership, the country has become favourable to far-reaching reforms to enhance the ease of doing business, enhance the infrastructure, and ensure intellectual property rights-controlling factors that are alluring to foreign investors in search of stable, transparent, and forward-looking environments.

Second, Yunus's focus on growth that is inclusive has resulted in policy measures inducing growth in supportive industries like information technology, renewable energy, and social enterprises and opening up new sources of finance for Bangladesh from overseas firms operating in new industries in Bangladesh.

With the emerging middle class, improved workforce, and expanding marketplace, Bangladesh's future looks bright in being a destination for FDI. The visionary policies of the government to minimie bureaucracy facilitate regulatory approaches to make it easier and cultivate innovation, which enhances the appeal even more.

Lastly, Yunus's worldwide prestige and focus on world cooperation contribute to Bangladesh's world reputation, and investors looking for morality-driven leadership for the general welfare and ecological business practices find it attractive.

Bangladesh during Yunus's time therefore is not only a cheap-labour region but also an expanding source of high-impact, progressive investments conforming to the world's focus on sustainability and social responsibility.

A FOREIGN INVESTMENT ATTRACTION STRATEGIC STRATEGY: BIDA's success in attracting FDI depends on its overall strategy that is beyond economic data. Nahian Rahman, Chief Business Development of BIDA, outlined that more than 3,500 people attended meetings, and several official meetings were conducted to onboard partners. But it is pre-summit groundwork, coupled with strategic moves to introduce international investors to the industrial environment of Bangladesh, that sets the tone.

As Harun was eager to emphasise, gross investment cannot be the only gauge of the success of the summit. True success of the summit is in changing the perception of Bangladesh abroad. Traditionally, foreign investors tend to have out-of-date or unbalanced views of the emerging markets, and this can *&*&*&*&*&*& the potential of the investments. To counter this, BIDA moved pre-emptively on the nation by demonstrating firsthand experience of the development and infrastructure of the country.

In the initial two days of being at the top, the foreign investors were given grand tours of the key industrial facilities, which gave them a practical insight into the country's capability and potential. Foreign investors' exposure to Bangladesh's developing infrastructure, such as visits to the production units and points of investment, were key in demystifying and winning the investors' confidence. These tours gave the investors a neutral experience of the country's dedication to reform, improvement, and ease of investment.

Additionally, on April 9, the government outlined its vision for the nation's future incorporating sustainable development, improved industrial growth, and a strong regulatory mechanism to assure investor confidence. By openly stating so, it made it simple for investors to identify with Bangladesh's direction, infusing confidence within the nation's future economy.

THE NEED FOR REFORM AND PIPELINE BUILDING: One of the key aspects of the success of the Bangladesh Investment Summit 2025 was that it had an equal focus on both the short-term opportunities and the long-term strategic transformations that the country had to achieve for sustainable growth. Harun, Executive Chairman of BIDA, emphasized ongoing reform to make Bangladesh competitive in the rapidly integrated world marketplace. As he said, "Reform is not an episodic process but a process that makes countries relevant and dynamic in the light of shifting economic paradigms." This reflects the necessity of adaptive changes which can address present needs as well as future problems.

Although getting foreign direct investment (FDI) is essential, it is equally crucial to build and maintain a steady stream of prospective investments. This pipeline approach entails the raising of up-front capital flows and the establishment of investor confidence and commitment in the long term. Having a steady stream of opportunities established that investors can look forward to-through established networks, follow-on interactions, and continuous collaboration-allows for the establishment of a growth-supportive, sustainable environment. In this regard, BIDA has agreed to stay in contact with the summit attendees, sending follow-up communications expressing appreciation for their subscriptions and keeping the dialogue going after the event has concluded.

Strategic pipeline growth is a critical component of overall investment attractiveness for Bangladesh. It's fostering of regular contacts and provision of investors with regular updates on potential opportunities means that the momentum generated by the summit does not evaporate. Such regular nurturing of contacts ensures Bangladesh remains one of the first preference places to be thought of for investment, not only today but at any future time in the future. Furthermore, the emphasis given to post-summit activity ensures Bangladesh's position as a good, stable bet to be concentrated on by foreign investment remains unbroken.

A pipeline of investment cannot flourish unless reforms necessary are implemented. Structural reform to the regulatory framework, openness, and ease of business are all needed to make these possibilities realities. As the reforms begin to yield dividends, investors will find Bangladesh more and more the destination for one-time investments and partner with whom to share long-term, sustainable growth. It is the vision of the long term that distinguishes Bangladesh, keeping the country's position in the world marketplace firm, sustainable, and competitive.

COST-EFFICIENT AND STRATEGIC BUDGET MANAGEMENT: In spite of the scale of the event, the summit was held under the umbrella of a budget that was a hallmark of creative fiscal discipline. The total event expenses amounted to Tk 50 million, a much more modest figure compared to the initial budgetary estimate. This cost-effectiveness is testimony to the improvement of Bangladesh's investment-promotion infrastructure to conduct effective events at no wasteful expense to the country's purse. The state's spending of around Tk 15 million and the financial input of Tk 35 million from the summit partners demonstrate cooperative efforts to promote the country's investment agenda.

FROM HERE TO 2035: The summit also provided an opportunity to discuss Bangladesh's vision for the future. With an eye on 2035, the nation envisioned the direction of growth, focusing on the shift towards more diversified industries, advancements in technology, and an improved business climate. The summit presented Bangladesh as a nation poised to undergo revolutionary change, presenting the world an opportunity to be part of the country's ascendancy to South Asia's economic powerhouse.

The message at the top was clear: Bangladesh welcomes foreign investors and sincerely strives to provide an open, efficient, and profitable platform to welcome investors. BIDA's forward-thinking strategy of projecting the country's potential has set the ground well to facilitate future growth and partnerships.

FUTURE-PROOFING BANGLADESH: In an age of fast-paced technological progress and a growing Artificial Intelligence (AI) dominance, Bangladesh universities must keep up, modifying curricula so the Gen-Z generation is prepared to deal with the future world of employees. While the world is going ahead to automate data-driven strategic decision-making, and embracing industries that welcome AI, it is the responsibility of universities within the country to ensure that the students graduating in the present times have the talent and brains to excel under such shifting paradigms. Including AI in the curricula and syllabi of universities is not lagging behind the world but a necessity to keep Bangladesh in sync with the cutting edge of the global economy. Muhammad Yunus states, "Education is the most powerful weapon which you can use to change the world." To tap into this power, schools and universities need to transform to meet the changing workforce and driving sectors of economic growth, specifically those in which AI has the greatest chance of disrupting the form of business models.

By incorporating AI literacy, coding, and data science in their curriculum, higher education institutions can prepare the next generation to be innovators and problem-solvers who can meaningfully contribute to industries like tech, finance, health, and manufacturing. Moreover, as AI-powered firms are the pace-setting force of the global economy, professionals well-versed in AI-centric industries will be more and more in demand. Thus, aligning the Bangladesh higher education system to these streams is crucial in order to attract FDI to the country. Foreign investors are seeking more from nations with an empowered, technology-enabled workforce that is equipped to support and drive AI-based industries. When Bangladesh's universities are opened to the integration of AI, not only the students but also the investors around the world will be informed that the nation is set on developing innovation and offering qualified manpower towards enhancing growth. Such integration of education and industry demands will be the prime driver for FDI, economic growth, and Bangladesh as the leading AI innovation hub of South Asia

CONCLUSION: All in all, Bangladesh Investment Summit 2025 is a roadmap to how skilfully arranged, strategic-investment focus-driven such an event may reinvent an entire nation's investment culture. In an inherent merger of exposures on grass-root level, forthright communication, and planning at a vision-implying juncture, BIDA got the attention of overseas investors as well as endeavoured to increase the position of Bangladesh as an even more wanted Foreign Direct Investment (FDI) hub. As Chaudhury Ashik Mahmud Bin Harun so well put it, "The success of the summit is not only in the immediate tie-ups but what has been created is something that can last, some relationship, some perception that has been created." These long-term relations, the effort to ease the apprehensions of the investors, and the proof of the country improving day by day will be crucial in keeping Bangladesh at the top of the investment destinations of the world. As the great investor Warren Buffet once proclaimed, "Foreign direct investment is the lifeblood of any economy's growth, fuelling innovation and unleashing new potential." This summit has indeed opened doors to such growth and innovation in Bangladesh.

Dr. Serajul I Bhuiyan is a professor and former chair of the Department of Journalism and Mass Communications at Savannah State University, Savannah, Georgia, USA.​

 

[Saif]

Bangladesh wants to be top manufacturing country: Yunus

Chief adviser Muhammad Yunus has said that his government’s aim was to transform Bangladesh into a manufacturing and economic hub as he held a closed-door meeting with several prominent foreign investors...

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Bangladesh wants to be top manufacturing country: Yunus
Bangladesh Sangbad Sangstha . Doha 24 April, 2025, 13:35

Chief adviser Professor Muhammad Yunus held a closed-door meeting with several prominent foreign investors in the Qatari capital, aiming to attract investment in some of the country’s key sectors. | UNB photo

Chief adviser Muhammad Yunus has said that his government’s aim was to transform Bangladesh into a manufacturing and economic hub as he held a closed-door meeting with several prominent foreign investors.

‘We want to be a top manufacturing country in the world,’ he said at the meeting on Wednesday as he welcomed all sorts of foreign investment in Bangladesh.

The meeting was arranged aiming to attract investment in some of the country’s key sectors as several notable figures including a former deputy prime minister of the Maldives, a member of the Malaysian royal family, a former Malaysian minister, a Qatari royal family member, top bankers, and several wealthy non-resident Bangladeshis were present, CA’s deputy press secretary Abul Kalam Azad Majumder told BSS on Thursday.

Addressing the investors, the chief adviser said his government is offering one of the most attractive investment climates in the region.

The investors expressed interest in exploring opportunities in sectors such as manufacturing, waste management, energy, banking, and tourism-particularly in the resort district of Cox’s Bazar.

Professor Yunus encouraged the investors to visit Bangladesh and engage in discussions with the relevant agencies.

Foreign adviser Md Touhid Hossain and senior secretary Lamiya Morshed were also present at the meeting.

Earlier, chief adviser Muhammad Yunus urged Qatari investors to invest in Bangladesh to take advantage of the immense potentials that the country offers.

‘Bangladesh is now back to business and back to business in a big way. We want your partnership,’ the chief adviser said at a programme in Doha on Wednesday evening.

Addressing the event titled ‘Bilateral Investment Opportunities Between Qatar and Bangladesh’, the chief adviser said the Interim Government had taken many steps to improve investment climate in the country and was dedicated to creating New Bangladesh free from corruption.

He shared the inspiring story of how Bangladesh once convinced Norwegian telecom operator Telenor to set up a telephone company in the country that in turn became its biggest profit-making venture.

Azad Ashraf, president of Bangladesh Forum, Qatar, delivered the welcome speech.

BIDA executive chairman Ashik Chowdhury gave a presentation before potential Qatari investors and non-resident Bangladeshis about investment opportunities in Bangladesh and the reforms undertaken by the country’s Interim Government to make business and investment easier.

‘If you ever consider Bangladesh the investment destination, this is probably the best time to do it,’ he said.

Addressing the event, energy adviser Fouzul Kabir Khan said when the Interim Government assumed office, Bangladesh had an outstanding debt of $3.2 billion, which has now come down to $600 million.

They include 254 million outstanding payments to Qatar Energy, which have come down to nil by Wednesday, he said.

He explained the Interim Government’s plan for energy safety and improved infrastructure for their benefit.

Qatar’s deputy undersecretary for industry and business development Saleh Majed Al Khalafi, co-founder of Next Smart Solutions Ali Ben Fardj, among others, spoke in the programme.

Foreign adviser Md Touhid Hossain was, among others, present while Bangladesh ambassador to Qatar Nazrul Islam delivered the closing remarks.​

 

[Saif]

Bangladesh showing export potential amid economic headwinds

Bangladesh is showing its industrial capabilities and export resilience even amid economic uncertainty and political transition, according to speakers.

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Bangladesh showing export potential amid economic headwinds
Says commerce adviser at the inauguration of Meet Bangladesh Expo

A man visits a stall showcasing Bangladesh-made drones at the Meet Bangladesh Exposition at the International Convention City Bashundhara in Dhaka yesterday. More than 120 local exhibitors and over 25 foreign buyers are taking part in the two-day event. Photo: Amran Hossain

Bangladesh is showing its industrial capabilities and export resilience even amid economic uncertainty and political transition, according to speakers.

They praised local entrepreneurs for that, saying the business community is transforming the economy through perseverance and innovation.

"You have built exceptional products that reflect the true potential of our nation," said Commerce Adviser Sk Bashir Uddin while inaugurating the two-day "Meet Bangladesh Exposition" at International Convention City Bashundhara.

Organised by the commerce ministry's Export Competitiveness for Jobs (EC4J) Project, the event features over 120 local exhibitors and more than 25 foreign buyers from countries including Singapore, Libya, Colombia, Algeria, the UAE, India, Malaysia, Bhutan, and the Maldives.

At the programme, the adviser, referring to the local business community, said, "Your success showcases extraordinary dedication in the face of global competition."

Uddin pointed to ongoing policy reforms for improving the ease of doing business, including the introduction of a national single window -- an integrated digital platform to simplify trade, enhance transparency, and reduce transaction costs.

"Our priority is job protection and creation," he said. "To sustain growth, we must continue to evolve."

Despite recent economic pressures, the adviser said that Bangladesh has maintained a steady export performance and is expected to benefit from falling operational costs in the near future.

Positioning the exposition as a curtain-raiser for the upcoming International Investment Summit, Uddin invited global investors to explore the country's industrial sectors.

"Our ministry is not just a regulator. It is your facilitator, analyst, and partner," he said.

"We are with you, for you, and beside you. I remain at your service to support your pursuit of excellence," added the adviser.

Sheikh Mohammad Abdur Rahman, joint secretary at the commerce ministry and deputy director of the EC4J project, said the expo highlights Bangladesh's industrial development, innovation, and growing focus on sustainability and environmental standards.

Welcoming international buyers and delegates, he said that many foreign buyers had already visited local factories and responded positively.

"Your enthusiasm was encouraging, and today's inauguration will further deepen your understanding of our capabilities," he said.

Rahman hoped that Bangladesh would attract greater interest from international markets, citing the country's reputation for quality and efficiency.

He also thanked development partners for their continued support.

Rahman added that the exposition, completed in just five months despite being planned for a year, was a source of national pride.

"This is more than a business event, it is a moment of national pride," he said.

Suhail Kassim, senior operations officer and acting country director of the World Bank, reaffirmed the bank's commitment to supporting Bangladesh in expanding industrial competitiveness beyond the readymade garment sector.

He cited initiatives like the Private Investment and Digital Entrepreneurship (PRIDE) project, which promotes economic zones and technology parks, as well as the launch of a country-specific private sector diagnostic to guide strategic reforms and export diversification.

"The World Bank remains committed to supporting SMEs, strengthening value chains, and driving long-term growth. We are proud to be part of Bangladesh's journey," he said.

Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, called for increased foreign investment in the SME sector, which contributes roughly 30 percent of GDP.

Ahmed emphasised the growth potential of the plastic industry, noting it could expand by 20 percent annually with proper investment and policy backing.

The exposition will remain open from 10am to 7pm daily. More than 1,000 local buyers are also attending to it, creating a platform for manufacturers to connect with global investors and industry stakeholders.

The expo includes guided factory visits, breakout sessions, and workshops led by business leaders and sector experts to encourage dialogue and foster partnerships across emerging export sectors such as medical and personal protective equipment, leather goods, footwear, plastics, and light engineering.​

 

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Trade diversion may benefit LDCs

Global trade is going through a turbulent year due to United States (US) President Donald Trump's tariff coupled with policy uncertainty. Least Developed Countries (LDC), especially export-oriented ones like Bangladesh, will face severe repercussions due to their concentration of trade on a small n

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Trade diversion may benefit LDCs
Asjadul Kibria
Published :
Apr 26, 2025 22:54
Updated :
Apr 26, 2025 22:54

Global trade is going through a turbulent year due to United States (US) President Donald Trump's tariff coupled with policy uncertainty. Least Developed Countries (LDC), especially export-oriented ones like Bangladesh, will face severe repercussions due to their concentration of trade on a small number of products as well as their limited resources to deal with setbacks.

These are the general observations made by the latest Global Trade Outlook and Statistics report, released in the third week of this month by the World Trade Organization (WTO) Secretariat. It said that the volume of world merchandise trade is expected to decline by 0.2 per cent in 2025 under current conditions, meaning suspension of Trump's reciprocal tariffs for three months. The situation will aggravate if the US president ultimately withdraws the suspension and applies his reciprocal tariffs. There will also be a broader spillover of trade policy uncertainty (TPU). Both these could lead to a sharper decline of global goods trade by 1.50 per cent in global goods trade and hurt export-oriented LDCs, added the WTO report.

To project the impact of reciprocal tariffs and TPU on trade and gross domestic product (GDP) globally and regionally, WTO conducted a modelling analysis of TPU, providing four cumulative trade policy scenarios. It showed that global trade might decline by 0.5 per cent to 4.3 per cent under four scenarios: only US TPU, actual tariffs, reciprocal tariffs, and TPU spreads. Under the third and fourth scenarios, LDCs' global trade may drop by 0.40 per cent and 0.90 per cent, respectively, while LDCs' combined gross domestic product (GDP) is likely to drop by 0.07 per cent and 0.74 per cent, respectively.

Interestingly, LDCs are projected to see their exports rise in the second scenario when LDCs' global trade may increase by 0.90 per cent. "The reason is that some LDCs - for example, Cambodia, Bangladesh and Lesotho - can expand their exports to the United States because their exports are highly dependent on products for which China currently has a large import share in total US imports, such as clothing and textiles, as well as electronic equipment," said the WTO report. That's why these LDCs may benefit from shifting demand towards their products. The WTO report categorically noted that the recent rise in tariffs and uncertainty is projected to positively impact merchandise trade flows of LDCs in the current year as export volume may grow by 4.80 per cent, and import growth should be 7.60 per cent.

Undoubtedly, it is a glimmer of hope for the LDCs. These countries are generally among the most vulnerable to external economic shocks. It is to be noted that the value of the global merchandise exports of the LDCs surged by 5.60 per cent to US$275 billion in the last year from $ 260 billion in 2023 when LDCs global exports had declined by 2.0 per cent from $266 billion in 2022. The surge slightly increased the share of LDCs in world exports at 1.12 per cent, an all-time high, in the last year, which was 1.09 per cent in 2023. Merchandise imports of LDCs also jumped by 3.20 per cent to $349 billion from $338 billion in 2023. Earlier in 2022, LDCs global import stood at $361billion in 2022. The share of LDCs in world imports also increased slightly to 1.41 per cent in 2024 from 1.39 per cent in 2023 but matched the previous peak of 1.41 per cent in 2022.

At present, 37 of the 166 members of the WTO are LDCs. The total number of LDCs is 45, as per the United Nations (UN) list, of which 15 are at various stages of graduation. Of these, three LDCs, Bangladesh, Lao PDR, and Nepal, will be graduated by the end of 2026.

As the Trump tariff is mainly designed to hit China, there will be a decline in Chinese exports to the US market. The WTO report projected that most regions will see a fall in exports to the US, with the most significant reduction for China (77 per cent). However, the report also highlights a promising trend-Asia (excluding China) and in particular LDCs are projected to take over some of the lost market share of China facing higher tariffs. This presents an opportunity for LDCs to expand their global market presence.

In other words, trade diversion will benefit the LDCs, and their combined exports to the US may increase by 22 per cent in the current year. As a result, LDCs' export share to the US market will stand at 3.2 percentage points, while China's share will drop by 10.50 per cent. US is the third largest market for LDCs combined exports while China and European Union (EU) are the first and second largest destinations respectively.

At present Bangladesh is the leading exporter of LDCs as country shares more than one-fifth of the LDC's total exports. Again, the US is the leading market for Bangladeshi goods, and the country's exports to the US stood at $8.36 billion in 2024. Last year, the country also faced an average of 15.70 per cent import tariffs in the US market. Trump imposed a 37.50 per cent reciprocal tariff on imports from Bangladesh in the first week of this month, along with various tariff rates on some other countries. Although he later suspended it for three months, it is uncertain about what he will do ultimately.

As predicted by the WTO, the potential trade diversion from China presents an opportunity for Bangladesh, although it is difficult to estimate. Theoretically, trade diversion occurs when 'tariff causes imports to shift from low-cost countries to higher-cost countries.' In other words, trade diversion is undesirable due to its 'concentration on production in countries with a higher opportunity cost and lower comparative advantage.' However, Trump's tariff may fuel trade diversion from China for the time being. It is crucial for Bangladesh to seize this opportunity and strategically enhance its exports to the US market.​

 

[Saif]

Bangladesh races to expand air cargo capacity

In a first move to address the shortfall, Sylhet's Osmani International Airport is set to launch dedicated cargo operations today

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Bangladesh races to expand air cargo capacity
Sylhet airport set to launch dedicated cargo operations today; Chattogram to follow suit

Bangladesh is racing to expand its air cargo capacity after India's abrupt suspension of third-country transshipment earlier this month upended a logistics route for garment exporters.

The Indian decision, announced without warning on April 8, cut off a vital land-air corridor that allowed Bangladeshi goods to move overland to Kolkata and Delhi airports and onward to global markets. The disruption has forced Dhaka to fast-track efforts to diversify export channels and reduce dependence on India.

In a first move to address the shortfall, Sylhet's Osmani International Airport is set to launch dedicated cargo operations today and become the country's second airport to handle freighter flights after Dhaka's Hazrat Shahjalal International Airport (HSIA).

A chartered Airbus A330-800 freighter of Galistair Aviation is scheduled to depart Sylhet at around 7:05pm, carrying up to 60 tonnes of garments to Spain, said Shakil Meraj, director (in-charge) of the Cargo Department of Biman Bangladesh Airlines. The shipment is bound for Inditex, the Spanish clothing company that owns several major fashion brands, including Zara. Biman will provide cargo and ground-handling services for the inaugural flight.

Civil Aviation and Commerce Adviser Sk Bashir Uddin is expected to attend the inaugural ceremony as chief guest, alongside Bangladesh's Ambassador to Mexico M Mushfiqul Fazal Ansarey and Civil Aviation and Tourism Secretary Nasreen Jahan, who will be present as special guests.

"This is a significant milestone as Sylhet becomes operational for cargo flights," said Civil Aviation Authority of Bangladesh (CAAB) Chairman Air Vice Marshal Md Monjur Kabir Bhuiyan. He added that explosive detection systems, X-ray scanners, and additional security arrangements had been installed to meet international freight handling standards.

The initiative to open Sylhet is part of a broader strategy to decentralise and expand Bangladesh's cargo-handling capacity. Officials are also moving to activate Shah Amanat International Airport in Chattogram for dedicated cargo operations, which have remained dormant since 2022.

An emergency meeting was held at Chattogram airport on April 21 to address operational bottlenecks. Group Captain Sheikh Abdullah Alamgir, director of the airport, said preparations were underway to restart cargo services and that initial capacity would allow at least two large freighter flights per week. "India's decision is a wake-up call. We now have an opportunity to become more self-reliant," Alamgir said.

Mohammad Ibrahim Khalil, public relations officer at the airport, said Chattogram's cargo station, capable of handling 250 tonnes for imports and 20 tonnes for exports, had remained largely unused since the suspension of import cargo flights two years ago.

Industry stakeholders have welcomed the move, but stressed that long-term success would depend on comprehensive infrastructure improvements and cost competitiveness.

"This service should not operate on an ad hoc basis. Full facilities, including screening equipment and scanning machinery for export shipments, must be installed so that exporters feel encouraged to use the airport regularly," said Kabir Ahmed, president of the Bangladesh Freight Forwarders Association (BAFFA). He noted that Sylhet's cargo infrastructure had remained largely underutilised until now.

Ahmed said the success of the initiative would also hinge on cost. If regular flights from Sylhet to Europe could maintain rates between $2.6 and $2.7 per kilogram, air shipment would be attractive for exporters, he said. For chartered flights, a rate of around $3.5 per kilogram would still be competitive, he added.

Ahmed cautioned that the government should open cargo services at Sylhet and Chattogram airports to all exporters, rather than prioritising shipments for specific companies.

COST DIFFERENTIALS

The urgency reflects the scale of the disruption. Freight forwarding industry estimates indicate that about 600 tonnes, or roughly 18 percent of Bangladesh's weekly garment air exports during lean seasons, were routed through Indian airports before the ban. The Indian route, which gained prominence during the Covid-19 pandemic, offered faster lead times and lower costs compared to shipping directly out of Dhaka.

Cost differentials were substantial. Even after factoring in overland transport costs, shipping garments to Europe via India had cost about $2.6 per kilogram, compared to $2.9–$3.2 per kilogram through Dhaka airport during off-peak periods and up to $4.5 during peak season, according to freight forwarders. Major buyers such as Inditex, which maintains a distribution hub in Delhi, had increasingly shifted shipments to India to meet tight delivery schedules.

By contrast, HSIA has long struggled with capacity and operational inefficiencies. Its cargo village, designed to handle 300 tonnes a day, regularly processes more than 800 tonnes in off-peak periods and up to 1,200 tonnes during peak seasons. Reports of cargo being left exposed to the elements, coupled with high ground-handling fees -- 29 cents per kilogram in Dhaka compared to just five cents at Delhi airport -- have compounded frustrations among exporters.

Between January 2024 and March 2025, Bangladesh's garment exporters shipped more than 34,900 tonnes of apparel worth $462.34 million through Indian airports to 36 countries, according to data from the Bangladesh Garment Manufacturers and Exporters Association.

Bangladesh's air cargo exports through India over the 15-month period included a range of products such as blouses, trousers, T-shirts, and baby garments. Key markets included the US, Germany, France, Japan, and South Korea, along with non-EU destinations such as the United Arab Emirates, Australia, Canada, South Africa, and Chile.

Now, CAAB and Biman are jointly reviewing civil aviation tariffs and ground-handling charges to improve competitiveness. "We expect to announce reduced handling charges very soon," Bhuiyan said, noting that the government plans to form a task force led by the Ministry of Civil Aviation and Tourism to coordinate reforms.

Longer-term hopes are pinned on the much-delayed third terminal at HSIA, which is expected to open early next year. Once operational, the terminal is projected to raise Dhaka's export cargo capacity from 200,000 tonnes to 546,000 tonnes annually, supported by a new 36,000-square-metre cargo zone.

Commerce Secretary Mahbubur Rahman said the government moved to expand shipment facilities at Sylhet and Chattogram airports to serve a wider range of exporters.

Rahman acknowledged that without substantial reductions in ground-handling charges at HSIA, it would be difficult to achieve competitive rates at other airports. "The government will substantially cut ground-handling charges and lower aircraft refuelling costs to reduce operational expenses. Overall logistics costs for air cargo shipment will fall significantly," he said.

The expansion is seen as critical for Bangladesh's $40 billion garment export sector, which accounts for around 85 percent of total exports and depends heavily on efficient logistics to meet delivery deadlines in Europe, the US and beyond.​

 

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Bangladesh gets $2.27 billion in remittance in 26 days

Bangladesh received a record $2.27 billion in remittance in the first 26 days of April, according to an updated report published by Bangladesh Bank. As per the report, the country is receiving $87.3 million in remittance every day on an average. Out of the total, $853.8 million entered the countr

thefinancialexpress.com.bd

Bangladesh gets $2.27 billion in remittance in 26 days
FE ONLINE DESK
Published :
Apr 27, 2025 19:45
Updated :
Apr 27, 2025 19:47

Bangladesh received a record $2.27 billion in remittance in the first 26 days of April, according to an updated report published by Bangladesh Bank.

As per the report, the country is receiving $87.3 million in remittance every day on an average.

Out of the total, $853.8 million entered the country through state-owned banks, $119.4 million through a specialised bank, $1.29 billion through private banks, and $4.3 million through foreign banks.

In March, Bangladesh received a record $3.29 billion in remittances.​

 

[Saif]

Govt's move to replace transshipment through India opens 'new horizon' in cargo services for exporters

Commerce Adviser Sheikh Bashir Uddin said that the government is working to offer cargo services to exporters at significantly lower rates than those availed in India, till Delhi cut off the transshipment facility through its land ports for Bangladeshi exports to third countriesHe made the remarks

thefinancialexpress.com.bd

Govt's move to replace transshipment through India opens 'new horizon' in cargo services for exporters
UNB
Published :
Apr 27, 2025 23:28
Updated :
Apr 27, 2025 23:28

Commerce Adviser Sheikh Bashir Uddin said that the government is working to offer cargo services to exporters at significantly lower rates than those availed in India, till Delhi cut off the transshipment facility through its land ports for Bangladeshi exports to third countries.

He made the remarks during the inauguration of direct cargo flights through Sylhet Osmani International Airport on Sunday.

Bangladesh had enjoyed the facility for five years (2020-25), during which it emerged that some exporters actually found it cheaper to transfer their products to some countries by sending the the goods over land to India, from where they could avail cheaper cargo services, than by sending them direct from Bangladesh.

The model 337 cargo flight took off from Sylhet to Spain at around 8:15 pm carrying 66 tons of garment products.

The adviser mentioned that this marks the first cargo service outside Dhaka since the country's independence, calling it a historic milestone for the people of Sylhet.

He further said that the launch of cargo flights from Osmani International Airport is undoubtedly a groundbreaking initiative. "The fascist government had destroyed our own thinking and made us dependent."

Sheikh Bashir Uddin also mentioned that the closure of India's transshipment facility has prompted the government to resolve the issue internally, and this has been accomplished in a short time thanks to collective cooperation.

With the opening of the new cargo complex at Sylhet Osmani International Airport, the region now has a new route for exporting goods quickly.

The Chairman of the Civil Aviation Authority, Air Vice Marshal Muhammad Manjur Kabir Bhuiyan, who presided over the event, called the development a "new horizon" for the country's export sector, signaling a breakthrough.

He said that two cargo flights will initially depart from Sylhet per week, with plans to gradually increase the frequency.

Bangladesh's Ambassador to Mexico Mushfiqul Fazal Ansarey, Secretary of the Ministry of Civil Aviation and Tourism Nasrin Jahan, and Hafiz Ahmed, Director of MAG Osmani International Airport, also spoke at the ceremony.​

 

[Saif]

Bangladesh starts freighter flights as India halts trans-shipment

The inaugural freighter flight, full of cargo, took off Sylhet’s Osmani International Airport Sunday evening.

www.newagebd.net

Bangladesh starts freighter flights as India halts trans-shipment
Saddam Hossain in Dhaka with Zaman Monir in Sylhet 27 April, 2025, 21:19

Bangladesh’s first freighter flight takes off from Sylhet. | BSS photo

The inaugural freighter flight, full of cargo, took off Sylhet’s Osmani International Airport Sunday evening.

The cargo flight from the airport began in the backdrop of India’s April 8 suspension of third-country trans-shipment for Bangladesh.

The civil aviation and tourism affairs adviser Sheikh Bashir Uddin inaugurated the flight on Sunday evening at the airport.

He said that the businesses would have the scope to export goods from Bangladesh from now on even at a lower cost.

‘The cost of carrying goods to Europe from Dhaka came down by 13 per cent than the previous cost,’ he added.

A chartered Airbus A330-300 freighter operated by Galistair Aviation departed Sylhet airport Sunday evening, carrying 60 tonnes of readymade garments to Zaragoza of Spain via Dubai. Biman Bangladesh Airlines will provide ground-handling services for the operation.

The RMG items will be delivered to Inditex, which is claimed to be the world’s largest fast-fashion brand based in Spain.

The Bangladesh ambassador to Mexico, Mushfiqul Fazal Ansary, and the Civil Aviation and Tourism ministry secretary, Nasrin Jahan, among others, addressed the programme.

Osmani International Airport director Hafiz Ahmed said that exporting goods from the Sylhet region to Spain would have a positive impact on Bangladesh’s economy.

‘From now on, one cargo flight will go to Spain per week. If the demand of exporting increases, the number of flights will also be increased,’ he said.

He said that it would be possible to export agricultural products produced in the Sylhet region to different European countries including the UK if a packaging house was built in Sylhet.

A modern cargo complex with a capacity of 100 tons has been built at Osmani International Airport at a cost of Tk 26 crore, Hafiz added.

Regarding the cargo shipment from Sylhet, Bangladesh Freight Forwarders Association president Kabir Ahmed said that the service must be consistent.

‘The authority should install all facilities like screening, scanning and all necessary infrastructure to encourage exporters to use the airport regularly,’ he added.

However, the success of this initiative will depend heavily on freight rates. Exporters will find it viable if regular flights to Europe can offer freight charges between $2.6 and $2.7 per kilogram.

‘Even with chartered flights, maintaining a freight charge of around $3.5 per kilogram would still be considered competitive,’ he added.

He also urged the government not to favour any particular companies in cargo operations at Sylhet and Chattogram airports. Instead, the cargo services should remain open and accessible to all exporters to ensure fair competition and maximize export growth.

Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association, said that increasing competitive capacity was a must in modern business.

‘We use air cargo for exports. The use of air cargo will be higher in the future. In this case, increasing capacity is good for the industry,’ he added.

He also urged the government to install air cargo services at other airports.

On April 8, India withdrew the trans-shipment facility that allowed cargo to be exported from Bangladesh to third countries through Indian land customs stations.

India, in a circular dated June 29, 2020, permitted the movement of Bangladeshi export cargo in containers or closed-body trucks via Indian ports and airports.

Hazrat Shahjalal International Airport has long struggled with capacity shortages and operational inefficiencies.

According to the BGMEA, from January 2024 to March 2025, Bangladeshi apparel exporters shipped over 34,900 tonnes of garments worth $462.34 million to 36 countries through Indian airports.​

 

[Bilal9]

IMF forecast hints at Bangladesh’s economic recovery​

Bangladesh’s economy is showing signs of recovery, with the latest forecast from the International Monetary Fund (IMF) projecting a significant upturn.

In its World Economic Outlook released on Tuesday night (Washington time), the IMF projected a GDP growth of 3.8 per cent for Bangladesh in the current fiscal year (2024-25).

The outlook further anticipates an increase in growth to 6.5 per cent in the following fiscal year (2025-26), reports UNB.

The report was unveiled on the second day of the World Bank-IMF Spring Meetings, currently taking place in Washington, USA.

Alongside global trends, the IMF updated country-specific data in this outlook. It projects inflation in Bangladesh to remain at 10 per cent.

The country has been grappling with persistent inflationary pressure over the past two years.

According to the Bangladesh Bureau of Statistics (BBS), inflation stood at 9.35 per cent in March, with an annual average of 10.26 per cent over the past year.

The Awami League government initially targeted a GDP growth rate of 6.75 per cent when it presented the budget for FY 2024-25 in June.

But, the interim administration recently revised the target downward to 5.25 per cent, citing ongoing financial challenges, business stagnation, and political instability following the change in government.

Earlier this month, the Asian Development Bank (ADB) projected a GDP growth of 3.9 per cent for Bangladesh this fiscal year—slightly higher than the IMF’s updated estimate.

Globally, the IMF expects average GDP growth to be 2.8 per cent, while the average for Asia is forecast to be 4.5 per cent.

A 15-member Bangladesh delegation, led by Finance Advisor Dr Salehuddin Ahmed, is participating in the Spring Meetings, which began on April 21 and will continue until April 26.

 

[Saif]

Taka gets stronger against US dollar

Bangladesh’s currency, the Taka, has become stronger against the US dollar, bolstered by recent growth in remittances and exports as well as reduced pressure on paying import bills. Bankers believe the price may continue to decline in the coming days. On Thursday, banks were paying between

thefinancialexpress.com.bd

Taka gets stronger against US dollar
UNB
Published :
Apr 28, 2025 20:59
Updated :
Apr 28, 2025 20:59

Bangladesh’s currency, the Taka, has become stronger against the US dollar, bolstered by recent growth in remittances and exports as well as reduced pressure on paying import bills.

Bankers believe the price may continue to decline in the coming days.

On Thursday, banks were paying between Tk 122.50 and Tk 122.60 to exchange a dollar in remittance. In contrast, just in the second week of this month, banks were paying between Tk 123 and Tk 123.20 for the same, reflecting a decrease of Tk 0.50 to Tk 0.70 in the dollar’s price within two weeks.

Bank officials predict a further decline in the dollar's value in the near future.

They argue that there is little likelihood of increased dollar demand in the next few months, as many investors are awaiting the upcoming elections before making new investment decisions. So, imports related to investment are unlikely to increase, they said.

Meanwhile, the Bangladesh Bank has said the dollar supply in the market is normal.

Central bank spokesperson Arif Hossain Khan said the dollar’s price will not be fully floated on the market immediately due to pressure from international donor agencies.​

 

[Saif]

Can domestic policies alone boost trade?

The question whether domestic policies alone can effectively boost trade has no easy and simple answers. External factors may determine its course. To understand the impact and limitations of such policies, it is essential to consider them within the broader context of today's global trading enviro

thefinancialexpress.com.bd

Can domestic policies alone boost trade?
Wasi Ahmed
Published :
Apr 30, 2025 00:08
Updated :
Apr 30, 2025 00:10

The question whether domestic policies alone can effectively boost trade has no easy and simple answers. External factors may determine its course. To understand the impact and limitations of such policies, it is essential to consider them within the broader context of today's global trading environment-an environment shaped as much by external forces as by internal ones.

It is commonly acknowledged that the power of domestic policies to stimulate trade has certain limits, particularly when considered against the backdrop of an ever more interconnected and interdependent global economy. Trade today is less about isolated national efforts and more about navigating a web of regional agreements, international regulations, and cross-border market dynamics. While domestic policy frameworks-such as competition policy, export-import (exim) policy, and industrial policy-play a crucial role in shaping the trade potential of a country, their influence is significantly constrained by external variables over which countries, especially developing and less-developed ones, have limited control.

Domestic policies are generally geared towards creating an enabling environment within the national economy. They aim to ensure price stability, encourage fair business practices, enhance industrial productivity, and create infrastructure conducive to trade. These measures support domestic firms in becoming more competitive, both at home and abroad. For example, a well-formulated industrial policy may promote sector-specific growth, leading to increased production for export. Similarly, competition policy can reduce monopolistic tendencies and improve consumer choice and pricing, thereby indirectly influencing the global competitiveness of domestic firms.

However, this is only one side of the coin. The other side presents a more challenging picture. No matter how sound a country's internal policies are, they often fall short of addressing trade barriers imposed by foreign partners. This includes non-tariff barriers, restrictive standards, subsidies, and protectionist measures that distort fair competition. The imbalance in economic strength and negotiating power between trading partners further complicates matters. Developing countries, for instance, frequently find themselves at the receiving end of trade negotiations, having to comply with rules that do not favour their interests.

It is precisely because of these challenges that nations increasingly seek alternative strategies to facilitate trade, such as forming regional alliances or entering into bilateral agreements. These arrangements are often seen as more achievable and less demanding than global trade negotiations. Regional trade agreements (RTAs) and bilateral deals offer a more manageable framework for cooperation--- one in which countries can expect a certain degree of mutual understanding and benefit. Geographical proximity often leads to shared challenges and goals, which can be more effectively addressed through joint efforts. For example, neighbouring countries may have similar agricultural concerns, infrastructure limitations, or energy needs, making cooperation more practical and result-driven.

The rise of regionalism in trade, therefore, has been largely driven by the desire for a level playing field-something that multilateralism, despite its broader reach, has frequently failed to provide. Yet, regionalism is not without its flaws. Asymmetries in the economic strength of countries within regional trade blocs have often resulted in unequal benefits. In several such arrangements, smaller or economically weaker members have struggled to keep up, unable to take full advantage of market access opportunities due to their limited production capacity or lack of export-ready goods. These internal disparities can undermine the broader goals of equitable trade and shared prosperity.

Coming back to domestic policies, their role in boosting trade, though undeniably important, must be viewed within these wider limitations. At best, domestic policies can serve to strengthen a country's internal supply base, address inefficiencies, improve product quality, and invest in research and innovation. They can enhance infrastructure, facilitate logistics, streamline customs procedures, and improve the business climate. All of these factors contribute to trade readiness and resilience.

However, domestic policies alone cannot address or overcome the external challenges that come with international trade. These include policy-induced barriers from partner countries, such as anti-dumping duties, phytosanitary standards that act as disguised restrictions, and sudden regulatory changes that disadvantage exporters. No matter how proactive or well-designed a country's internal policies are, they cannot shield it from the shifting landscape of international trade rules that may be tilted in favour of stronger players. For instance, many developing countries have experienced market access difficulties despite liberalising their own markets and aligning domestic policies with international norms. This suggests that mere adoption of trade-friendly policies is not enough to guarantee success in global markets. The external environment, particularly the actions and decisions of trade partners, plays a critical role in shaping outcomes. Without reciprocal openness, supportive international institutions and fair dispute resolution mechanisms, the potential of domestic policies remains unrealised.

Therefore, while domestic policies form the foundation of a country's trade strategy, they must be complemented by strategic engagement in regional and multilateral forums, capacity-building for trade negotiations and efforts to diversify trade partners and products. Furthermore, building alliances with like-minded countries, investing in regional value chains, and advocating for fairer international trade rules are all critical elements in a broader trade policy framework.​

 

[Saif]

BD won't take loan accepting all conditions: Salehuddin

Bangladesh will not borrow from the International Monetary Fund by accepting umpteen conditions binding loans, Finance Adviser Dr Salehuddin Ahmed said Tuesday, adding that the country is no longer IMF-World Bank-dependent. "If IMF doesn't agree to pay the budget-support credit, we will pr

thefinancialexpress.com.bd

'We are no longer IMF-World Bank-dependent'
BD won't take loan accepting all conditions: Salehuddin

He says so as Washington talks also end with deal on two strings-tied loan tranches still put on backburner

FE REPORT
Published :
Apr 30, 2025 01:16
Updated :
Apr 30, 2025 01:16

Bangladesh will not borrow from the International Monetary Fund by accepting umpteen conditions binding loans, Finance Adviser Dr Salehuddin Ahmed said Tuesday, adding that the country is no longer IMF-World Bank-dependent.

"If IMF doesn't agree to pay the budget-support credit, we will prepare budget on our own," he told reporters after a meeting of the Advisers Council Committee on Government Purchase at Bangladesh secretariat.

He notes that there are some issues with the International Monetary Fund that are not major things. "But we don't want to follow all these conditions."

The custodian exchequer under the current post-uprising government takes a stand as Washington negotiations, led by him, also ended with the necessary deal on two strings-tied loan tranches still put on the backburner.

Mr Ahmed mentions that during meeting with the IMF officials in Washington last week, they suggested implementing some conditions they found not palatable in the current context of the country's economy.

"But we said we won't walk that way," he said, adding that Bangladesh's macroeconomic stability is much better in a rebound that the last IMF mission to Dhaka also acknowledged.

He said the country's foreign-exchange market and reserves are stable without taking money from the IMF. "We didn't get money from the IMF after this government took office."

The finance adviser apprised the press that they had told the IMF side that "we have reached macroeconomic stability without your money".

Mr Ahmed, just back from Washington, referred to a press conference on IMF's Regional Economic Outlook for Asia and the Pacific and noted that its director Krishna Srinivasan said "we are arriving towards agreement".

According to the transcript of the briefing, Mr Srinivasan said there are two areas-greater exchange-rate flexibility and revenue mobilisation-where further discussion was needed. "Good progress is being made, but I won't put a timeline on when we can reach agreement."

Mr Ahmed thinks the gaps with the IMF will be over in a couple of days and from there the country will get $1.2 billion.

He hopes the country is set to get a good amount of money as project support from different development partners. The funds will come from the World Bank, the Asian Development Bank, New Development Bank and the Islamic Development Bank.

Bangladesh has already got $1.0 billion from the Asian Infrastructure Investment Bank (AIIB), he mentions.

In case of IMF loans, there are many conditions to get budget support. "If we don't get budget support from the IMF, we will prepare budget on our own."

Replying to a query, Mr Ahmed said the IMF wants the opening up of foreign-exchange market. "By opening the market we can't afford exchange rate of Tk 280 like in Pakistan and Tk 400 in Sri Lanka."

He said the exchange rate is already stable at Tk 120-122. IMF wants no band in case of exchange rate of the local currency.

The Fund offered to provide $1.0 billion worth of stabilisation fund if the band was removed. "But I said I won't make a commitment (of removing the band)."

About larger economic implications of exchange-rate free float, the finance adviser notes that if foreign-exchange rate remains volatile, investors will get wrong signal about the market.

Also, it will not give a good message to the private-sector investors.

To a query, he agreed that if the IMF regrets to provide the budget-support loan, other development partners would be cautious.

He also has a watchword about debt buildup from hard-term borrowing. The IMF gave Pakistan $7.0 billion, Argentina $20 billion-now they have $42-billion loan. And it is not sure whether they will be able to repay.

"We don't want to take loan burden," the adviser told the press.

Mr Ahmed said the government itself is to decide whether will stay in loan programme with the IMF or not. "If we don't take loan tranches, you will see many of the IMF officials lose jobs."

Citing examples, he said the incident of job loss of IMF officials happened centring loan dispute with Indonesia and Malaysia.

Regarding reciprocal tariffs imposed by the United States, he said discussion was held with the US officials on cotton and liquefied natural gas (LNG) imports in higher volume from there.

On financial-sector reforms, he said an ordinance would be promulgated soon on separation of the National Board of Revenue.

Mr Ahmed said Bangladesh should not make any retaliatory comment on some administrations like with the US government. China is now failing to save the situation after making bad comments.​