[🇧🇩] Monitoring Bangladesh's Economy

[Bilal9]

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

View attachment 16973

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.​

@PakistanProud, @Ghazi52 bhais take a look, we in South Asia all need to wean ourselves off of IMF and World Bank dependency.

Only loans (if at all) acceptable are Chinese and Japanese loans w/out slavery type pre-conditions.

 

[Saif]

Forex reserves steadily rise over $27b now

Bangladesh economy feels some respite as the country's foreign-exchange reserves rebound to a 20-month high of US$27.41 billion by the end of April 2025 by official count, despite major payouts. Bangladesh Bank (BB) sources say the recorded reserves size was the highest since August 2023 when th

thefinancialexpress.com.bd

Respite for BD economy from external front
Forex reserves steadily rise over $27b now

Mark 20-month high even after payout of overseas debts
JUBAIR HASAN

Published :
May 01, 2025 00:55
Updated :
May 01, 2025 00:55

Bangladesh economy feels some respite as the country's foreign-exchange reserves rebound to a 20-month high of US$27.41 billion by the end of April 2025 by official count, despite major payouts.

Bangladesh Bank (BB) sources say the recorded reserves size was the highest since August 2023 when the figure was $29.26 billion.

Despite the government having to make substantial payment in clearing accumulated external overdue bills in recent months, they add, the forex reserves continued rising, which gives an indication of steady rebound in foreign-exchange reserves.

As a matter of fact, the volume of net international reserves (NIR) also crossed $16.0-billion mark by the end of this past month of April.

Officials and money-market analysts say significant rises in inflow of remittances and export receipts largely prop up the country's foreign-exchange reserves notwithstanding a steady increase in import orders and settlements.

According to the latest statistics of the BB, the country's central bank, the gross forex reserves stood at $27.41 billion and $22.05 billion in BB and IMF's BPM6 calculations respectively.

On the other hand, the NIR rose to $16.12 billion after April 30, 2025, according to the official data.

Seeking anonymity, a BB official says the country's forex reserves continued to grow to cross $27 billion even after paying off too many external overdue bills, which is a "significant achievement".

"And this remarkable turnaround comes without assistance of the IMF (International Monetary Fund)," the official told The Financial Express-a day after the finance adviser of the post-uprising government said Bangladesh's economy is no longer IMF-World Bank-dependent as the Fund still kept loan release on the backburner.

The central banker said BB Governor Dr Ahsan H. Mansur, soon after +taking charge of the banking regulator in August last year, instructed them to clear all the overdue bills to improve image of the country globally.

As part of the instructions, the official said, they cleared all external payments backlog, like payments to Chevron and Qatar Energy. Despite the major payments, the reserves keep on the upturn.

Giving full credit to where credit is due--remitters and exporters--for bolstering the reserves, the BB official said, "The way the remittance is coming in recent days, the reserves will stay over $25 billion even after paying ACU liabilities amounting to $1.90 billion due in May."

The BB data showed remitters sent foreign currencies equivalent to $2.61 billion until April 29, 2025. With the latest injections, the country bagged $24.40 billion in remittances so far this fiscal (FY'25), the second-highest in the history after the FY'21 receipt of $24.77 billion.

In terms of export, the country registered a 10.52-percent increase in export earnings with $37.19 billion bagged in the first nine months of the FY'25 from $33.65 billion earned during the corresponding period of the last fiscal (FY'24).

As the feel-good mode prevails, Petrobangla in a press release Wednesday said they had managed to clear all external debts amounting to $3.74 billion two months before the cutoff time till June 2025.

The corporation mentioned that it cleared liabilities worth $1.45 billion of four types of creditors in the last two months (March and April).

The actual import in terms of settlement of letters of credit (LCs) grew by 4.07 per cent to US$45.99 billion during the July-February period of the current fiscal year (FY) 2024-25, from $44.19 billion in the same period of the previous fiscal year.

On the other hand, the opening of fresh LCs, generally known as import orders, rose by 4.62 per cent to $47.28 billion in the first eight months of this fiscal from $45.19 billion in the same period of FY'24.

Talking to the FE, Chairman of Policy Exchange Bangladesh Dr M Masrur Reaz said the steady rise in forex reserves gives an early but clear indication that the country's external sector like BoP is on right track for recovery.

"And the increase comes at a time when the import orders and settlements keep rising, which is quite encouraging, and the growth is robust," says the economist.

He notes that the significantly rising inflows of foreign currencies through remittance and export help bolster the reserves.​

 

[Saif]

Efforts are on to turn Bangladesh into regional manufacturing hub cashing potential of Chattogram

The interim government is actively working to turn Bangladesh into a regional manufacturing hub by cashing in on the huge potential of greater Chattogram, and enhancing the capacity building of Chattogram port is top priority to implement the visionary plan. Press Secretary to the Chief Adviser Sh

thefinancialexpress.com.bd

Efforts are on to turn Bangladesh into regional manufacturing hub cashing potential of Chattogram
BSS
Published :
May 02, 2025 22:45
Updated :
May 02, 2025 22:45

The interim government is actively working to turn Bangladesh into a regional manufacturing hub by cashing in on the huge potential of greater Chattogram, and enhancing the capacity building of Chattogram port is top priority to implement the visionary plan.

Press Secretary to the Chief Adviser Shafiqul Alam made the remarks while speaking at a press briefing on his maiden Chattogram visit after assuming power by the interim government led by Professor Muhammad Yunus.

Regarding the humanitarian corridor to Rakhine State of Myanmar through the south-eastern border of Cox’s Bazar, he said, “The government has categorically made clear its stance over the issue earlier.

First of all, such a corridor must be initiated under UN involvement, and then Bangladesh will give consent to such a facility after having a nod from the two countries involved in it. And before finalising the decision, the government must talk with all domestic stakeholders.”

The press briefing, held at Ctg circuit house conference room this afternoon, was also attended by deputy commissioner Farida Khanom, deputy press secretary Abul Kalam Azad Majumder, Chattogram Press Club Member Secretary Zahidul Karim Kachi, Chattogram Metropolitan Union of Journalists President Mohammed Shah Nowaz and General Secretary Saleh Noman.

Shafiqul Alam said that plan is underway to increase existing container handling capacity of Ctg port to six times by 2030, and otherwise, the country will not be able to attract foreign investors.

“Turning Bangladesh into a regional manufacturing hub is one of the core agendas of the interim government led by Prof. Muhammad Yunus aiming to take our economy to a new height and create job opportunities for the huge young workforce,” the press secretary said.

He said there will be no alternative to simplifying the export process as well as speedy upgrading of overall port efficiency for encouraging the foreign investors, which will help create scope for investments worth billions of dollars.

“We’ve a plan to engage globally leading port operating companies in our port sector which have a proven track record in managing and operating ports efficiently, and discussion is underway to this end,” he said, setting a target to accomplish the task by next September.

He said there is a target to increase the existing 1.27 million TEUs container handling capacity of the terminals in operation and under construction, including those at Laldia, Bay Terminal, Patenga and Matarbari, to 7.86 million TEUs by 2030.

Criticising the ousted AL government, Shafiqul Alam said, “AL has no right to talk over the Rohingya issue, as they were afraid of uttering the word ‘Rohingya' and were used to saying the Rohingya Bangalee term for the community as FDMN (Forcibly Displaced Myanmar Nationals)”.

Deputy Press Secretary Abul Kalam Azad Majumder said the government is trying to start repatriation of Rohingya refugees to Myanmar with vigorous efforts through convincing all stakeholders at Myanmar and other states.​

 

[Saif]

NBR Chairman suggests paying taxes first and spending later

National Board of Revenue (NBR) Chairman Md Shahriar Alam Saturday urged the citizens to pay taxes first and then spend them on the social sector and public welfare. Abdur Rahman Khan, according to local media. Mentioning that paying tax is a very important responsibility, he said, "After paying t

thefinancialexpress.com.bd

NBR Chairman suggests paying taxes first and spending later
FE ONLINE DESK
Published :
May 03, 2025 23:39
Updated :
May 03, 2025 23:39

National Board of Revenue (NBR) Chairman Md Shahriar Alam Saturday urged the citizens to pay taxes first and then spend them on the social sector and public welfare. Abdur Rahman Khan, according to local media.

Mentioning that paying tax is a very important responsibility, he said, "After paying tax, think about how much you will spend for the welfare of the people and how much you will spend for yourself and how much money you will save."

The NBR chairman made the call while addressing a function titled 'Gunijon Sammanana and Pahela Baishakh 1432' at Dhanmondi in the capital on Saturday evening. Lakshmipur District Youth Welfare Association, Dhaka accorded him a reception as a talented son of Lakshmipur district. ’

Md. Abdur Rahman Khan said, "Many people of our country think that after spending in the social sector, after giving zakat-sadaqah, there is no need to pay tax. ’

Highlighting the fragile system of revenue collection, the NBR chairman said, "We are far behind from this side. The biggest problem is that we still collect taxes from the poor, two-thirds of our total taxes are still collected from the poor through 'indirect taxes'. We can only collect one-third from income tax. We have a lot of work to do in these places. ’

He urged everyone to work together. Abdur Rahman said, "Let us all work together to establish a developed nation. We all work together so that we do not have to take loans, so that we can run the economy of Bangladesh with our own money. ’​

 

[Saif]

Bangladesh received $2.61b remittance in 29 days of April

Bangladesh received USD $2.61 billion in remittances in 29 days of the current month, April. At the same period of the previous year, the expatriates sent $1.91 billion remittance. According to the latest report of Bangladesh Bank, in the first 29 days of April, expatriates sent $2.61 billion in

thefinancialexpress.com.bd

Bangladesh received $2.61b remittance in 29 days of April
UNB
Published :
May 03, 2025 23:13
Updated :
May 03, 2025 23:13

Bangladesh received USD $2.61 billion in remittances in 29 days of the current month, April.

At the same period of the previous year, the expatriates sent $1.91 billion remittance.

According to the latest report of Bangladesh Bank, in the first 29 days of April, expatriates sent $2.61 billion in remittances. The remittance inward trend saw a growth of 36.6 per cent in 29 days of April 2025, compared with April 2024.

Bangladesh so far (till April 29) received $24.39 billion in remittances, which is already higher than what was received during the entire 2023-24 fiscal year.​