[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Supply chain disruptions thwart inflation fight

Bangladesh has adopted measures to curb inflation, including tighter spending controls and higher interest rates, but deep-rooted supply chain bottlenecks continue to drive up prices for essential goods, according to a report from the Finance Division.

www.thedailystar.net

Supply chain disruptions thwart inflation fight
Says govt report, recommends special mobile courts to fix bottlenecks

Bangladesh has adopted measures to curb inflation, including tighter spending controls and higher interest rates, but deep-rooted supply chain bottlenecks continue to drive up prices for essential goods, according to a report from the Finance Division.

The report shared by the chief adviser's press wing to the media yesterday recommended that these structural issues will require long-term solutions, even as inflation shows signs of easing.

Inflation, which surpassed 11 percent in July 2024, declined to 9.94 percent in January 2025. Food prices -- a major driver of inflation -- followed a similar trend, dropping from 12.92 percent in December 2024 to 10.72 percent in January this year.

Despite this progress, the report identifies supply chain inefficiencies as a key factor behind elevated costs, particularly for staples like rice, onions and potatoes.

To stabilise prices, the government should focus on improving storage and distribution networks for key commodities, the report suggested.

The report also recommends plans to conduct special mobile court drives at the district level to monitor and prevent price manipulation. It also calls for enhanced cold storage facilities and stricter oversight of food stockpiles.

Besides, the Bangladesh Competition Commission must be strengthened to prevent unfair market practices, with potential expansions to district-level operations under consideration.

"Although political shifts in 2024 brought some degree of economic uncertainty, the adoption of carefully planned monetary and fiscal policies by the interim government has resulted in positive developments in the economy," the Finance Division said in the report.

SHORT-TERM RELIEF EFFORTS

The government has rolled out several immediate measures to ease the price pressure on consumers. According to the report, subsidised sales of essential goods, including rice and cooking oil, are being conducted through Open Market Sales (OMS) in major urban areas.

As many as 1 crore families now benefit from subsidised food distributed through "family cards".

The government has also reduced import duties and taxes on key items like onions, potatoes, and edible oil to soften the impact of global price fluctuations.

Besides, public spending on non-essential projects has been trimmed to prioritise relief measures and ensure the availability of essential items.

Alongside supply-side efforts, the government has adopted contractionary monetary policies to temper inflation.

The central bank raised the repurchase agreement rate incrementally from 8 percent in July 2024 to 10 percent in December last year in an effort to curb excessive demand.

However, inflation remains elevated, signalling ongoing challenges, according to the report.

PATH AHEAD

While the recent decline in inflation offers some relief, the Finance Division report underscores that sustained progress will require addressing supply chain inefficiencies. Inflation is expected to drop to about 8 percent by June.

"Additionally, the external sector is showing signs of stability, which is a promising development," the report said. "If supply chain inefficiencies are effectively addressed, inflation control measures could restore economic momentum."

STRAIN ON FOOD STOCK

Bangladesh is facing significant challenges in maintaining food security due to the devastating impact of floods during the current fiscal year (FY) 2024-25.

The production of Aus and Aman rice has fallen short of targets by 9.55 lakh tonnes and 3.58 lakh tonnes, respectively.

This shortfall has led to a decline in government food stock, which currently stands at around 13 lakh tonnes -- 23.6 percent lower than in the same period last fiscal year.

While the government's effective storage capacity is 21.34 lakh tonnes, this gap highlights the urgency of stabilising food supply systems.

Plans are underway to import an additional 9 lakh tonnes of food grains this fiscal year. Buffer stock capacity for urea fertiliser has also been raised to 8 lakh tonnes, which will remain accessible through March.

Additionally, fertiliser subsidies have been continued, with Tk 28,000 crore allocated in the revised budget to stabilise fertiliser prices.

The government had made a separate allocation of Tk 8,059 crore to keep up food subsidies through programmes, including Open Market Sales and other year-round food assistance efforts.​

 

[Saif]

Economy improves, inflation, bank sector, worker unrest pose risks

The overall economy has been improving for the past six months, but worker unrests, inflation and fragile banking sector still pose risks, according to a Finance Division report released on Sunday...

www.newagebd.net

Economy improves, inflation, bank sector, worker unrest pose risks
Staff Correspondent 09 February, 2025, 23:56

The overall economy has been improving for the past six months, but worker unrests, inflation and fragile banking sector still pose risks, according to a Finance Division report released on Sunday.

The interim government led by Muhammad Yunus assumed power on August 8, 2024, three days after the ouster of Sheikh Hasina-led government amid a mass uprising against her 15 years of authoritarian rule.

Risks of the deterioration in the overall economic situation in the wake of regime change have been checked because of prudent monetary and revenue policies over the past six months, said the report submitted at a meeting presided over by the chief adviser at his Tejgaon office in the capital Dhaka.

Yunus instructed that individuals involved in bank robberies and those facing specific allegations against them must be brought to justice as soon as possible, said the chief adviser’s press secretary, Shafiqul Alam, at a post-meeting briefing at the Foreign Service Academy in the capital.

The meeting took stock of the country’s economy over the past six months.

The economy is recovering due to various measures taken by the interim government, said the press secretary adding that exports had increased by 10 per cent over the past five months.

The Finance Division report said that signs of improvement in the overall economy were visible as the inflation rate was falling from 10 per cent and was expected to come down to 8 per cent in June.

Noting that the external side is also signalling improvements, the report recommended overcoming flaws in the supply chain management to revive the economic activities across the board.

The report titled ‘Bangladesh economy: recent development and tasks ahead’ feared that worker unrests in the industrial sector and the scam-hit financial sector still posed risks.

It recommended clearing the payment of workers by selling the closed factories of BEXIMCO and the joint monitoring by police and intelligence agencies to check spill-over of the worker unrests.

The report also laid importance on bringing back discipline in the financial sector, especially the banking sector facing risks because of mismanagement by the past Awami League regime and ballooning non-performing loans.

Ten banks are at serious risks, said the report without naming the banks.

The report recommended providing liquidity supports to problem banks to enhance the confidence of depositors.

It also recommended making law department of banks powerful so that looted money of the banks could be recovered.

Recommending bolstering international efforts for bringing back the money stolen during the AL regime, the report suggested the continuation of monitoring of the trade-based letters of credit.

The report also focused on the country’s food and energy sectors, highlighting the steps taken in the past six months.

To ensure food security, the decision on importing additional nine million tonnes of grain has been made in the wake of 13 million tonnes less production of aus and aman than the estimate due to two rounds of flood.

For maintenance of the country’s energy security, the report said that the budgetary subsidy in the current budget had been increased to Tk 62,000 crore from Tk 40,000 crore to clear the arrears on power and gas.

The report recommended the automation of incomes and value-added-tax to generate more revenue to pull up the falling tax-GDP ratio to 8 per cent.​

 

[Saif]

Economy rebounding notably, policymakers tell CA

The top echelon of Bangladesh's present financial policymakers has noted that the economy, which endured stresses for long following mismanagement by the previous regime, now bounced back significantly. They made their observations at a summit-level meeting Sunday on 'economic challenges and next

thefinancialexpress.com.bd

Economy rebounding notably, policymakers tell CA
Inflation to ease to 7-8pc by June
FE REPORT
Published :
Feb 10, 2025 00:43
Updated :
Feb 10, 2025 00:43

The top echelon of Bangladesh's present financial policymakers has noted that the economy, which endured stresses for long following mismanagement by the previous regime, now bounced back significantly.

They made their observations at a summit-level meeting Sunday on 'economic challenges and next steps', chaired by Chief Adviser Dr Muhammad Yunus.

After the stocktaking meeting was over, Shafiqul Alam, Press Secretary to the CA, apprised journalists in a media briefing about the discussions and decisions that also covered government actions for coming to grips with post-uprising law-and-order situation across the country.

Presentations on a string of economic and fiscal issues like inflation, export, import, foreign trade, and food and energy security were made in the meeting after which the chief adviser expressed his satisfaction over the performances on the economy with an observation: "We need to do better."

On the crucial issue of inflation, the meeting was told that during July last year, the average inflation rose above 11 per cent on a point-to-point basis, but it slid to 9.94 per cent in January this year.

"The government is expecting that due to the steps taken by it the inflation can be reduced to 7.0 to 8.0 per cent by June this year," Mr Shafiq told the media.

The CA was told in the meeting that gross domestic product (GDP) growth in the last fiscal was 4.22 per cent against the provisional estimate of 5.8 per cent.

The GDP size of the country in the last fiscal was 450 billion US dollars though it was estimated at $459 billion.

Similarly, the per-capita Gross National Income was finalised at 2738 dollars against the estimated $2784.

In the meeting the head of interim government directed the authorities concerned to ensure full autonomy of the central bank as soon as possible, and in response, the Bangladesh Bank Governor, Dr Ahsan H Mansur, told him that steps were underway in this regard.

The governor also mentioned that all kinds of hiring and recruitment in the central bank stayed suspended for the time being.

The meeting was told that due to the "plundering by oligarchs" during the past regime, 10 banks were in vulnerable condition but through constant monitoring by the central bank two of them showed signs of recovery.

The default loan in the banking sector stood at Tk2.84 trillion (284,977 crore) in September 2024.

The meeting also discussed the issue of bringing back the laundered money and it was told that the government is in discussion with several countries to repatriate the money through standard procedure.

Dr Yunus told the meeting those who were involved in laundering money must be brought to book, and in response, he was informed that 12 business groups were identified as the main perpetrators.

Already, all the assets of S Alam Group, one of the main oligarchs of the ousted regime, were expropriated, the BB informed the meeting.

Finance Adviser Dr Saleh Uddin Ahmed noted that the country gets back the macroeconomic stability and the situation is expected to improve further, the press secretary said.

The meeting was also told that with rising exports and employment, easing inflation, and improved balance-of-payments situation the economy will perform better in coming days.

"The government step to introduce tighter and contractionary monetary policy and enhance the rates on policy instruments coupled with supply of necessary commodities to poor people through safety-net programmes resulted in the easing of inflation," the meeting noted.

However, responding to a question on the CPD remark that the interim government had failed to take any significant step to revive the economy, the press secretary said easing of inflation and rise in exports resulted from the steps of the government.

The press secretary informed that the long standing issue of land mutation of the Korean EPZ in Chittagong was resolved by this government as the government handed over the mutation documents to the KEPZ authorities on Thursday.

"Many global giants like Samsung could not invest in this EPZ in a bigger way due to the mutation problem, which was not resolved by the previous regime," he said, adding that the oligarchs of the previous regime had "an ill intention to grab this land" and that is why the KEPZ problem was not resolved.

The meeting also dwelled on the latest law-and-order situation, in the wake of some troubles, and a coordinated crime-control action under a recently proposed command centre of forces. The government has just launched a countrywide drive codenamed 'Operation Devil Hunt'.

"The Command Centre under home ministry will roll out today where representatives of all the security agencies attached to the home ministry will be included. Even representatives of the armed forces will be there," Mr Shafiq said, adding that this centre will keep constant monitoring of the activities of the law enforcers in a bid to improve the law-and-order situation.​

 

[Saif]

Key economic sectors expand faster

Bangladesh's key economic sectors expanded faster month- on-month in January, as reflected in the Bangladesh Purchasing Managers' Index (PMI) that recorded a reading of 65.7, up 4.0 points from December's. The PMI provides a snapshot of economic activity, with a reading above 50 indicating expan

thefinancialexpress.com.bd

Key economic sectors expand faster
January expansion index reading 65.7pt
FE REPORT
Published :
Feb 10, 2025 00:44
Updated :
Feb 10, 2025 00:44

Bangladesh's key economic sectors expanded faster month- on-month in January, as reflected in the Bangladesh Purchasing Managers' Index (PMI) that recorded a reading of 65.7, up 4.0 points from December's.

The PMI provides a snapshot of economic activity, with a reading above 50 indicating expansion, below 50 signalling contraction, and 50 representing stagnation.

The latest reading was driven by stronger expansion in agriculture, construction, and services, while the manufacturing sector experienced a slower expansion.

However, the PMI report predicts that future economic momentum will depend on political stability, particularly regarding the timeline and roadmap for a transition to an elected government.

The agriculture sector recorded its fourth consecutive month of expansion, with a faster expansion in business activity. Both new business-and order-backlog indices returned onto expansion territory.

However, the employment index fell into contraction, while input costs expanded at a slower rate.

As for manufacturing, the sector posted its fifth consecutive month of expansion, but at a slower pace. Indicators for new orders, new exports, factory output, input purchases, imports, input prices, and supplier deliveries showed slower expansion.

The finished-goods index accelerated, while the employment index returned to expansion, and order backlogs contracted at a slower rate.

Construction sector recorded its second month of expansion at a faster pace, with stronger growth in new business, construction activity, and input costs.

However, the employment index moved into contraction, and the order-backlog index showed a faster contraction.

Services sector expanded for the fourth consecutive month, with a faster expansion in new business, business activity, employment, and order backlogs. The input- cost index also rebounded.

"The latest PMI readings indicate that the economy remains on an expansion track for the fourth consecutive month, likely driven by growing exports, seasonal consumption trends, and improvements in the agro-supply chain," says a press release on the PMI.

However, new business investments and expansion confidence remain weak, particularly among firms catering to the domestic market.

"This is attributed to sluggish demand, rising business costs, and energy-supply disruptions."

The Bangladesh PMI was launched in 2024 by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh, in collaboration with the Singapore Institute of Purchasing & Materials Management (SIPMM) and supported by UK International Development.

The index covers key economic sectors and is based on monthly surveys of over 500 private-sector enterprises. The survey measures changes in business activity compared to the previous month using the diffusion-index methodology, aggregating responses across various economic indicators. The methodology was developed by SIPMM, with technical support from Policy Exchange.​

 

[Saif]

BB keeps policy stance tight to tame inflation

The Bangladesh Bank (BB) has maintained its tight monetary policy stance for the second half of the current fiscal year (FY) 2024-25 to tame the stubbornly high inflation.

www.thedailystar.net

BB keeps policy stance tight to tame inflation

The Bangladesh Bank (BB) has maintained its tight monetary policy stance for the second half of the current fiscal year (FY) 2024-25 to tame the stubbornly high inflation.

To this end, the policy interest rate, a key tool of monetary policy, has been kept unchanged at 10 percent for the January-June period of FY25.

Besides, the standing deposit facility (SDF) and standing lending facility (SLF) rates -- at which commercial banks deposit with and borrow from the BB -- will remain at 8.5 percent and 11.5 percent, respectively.

During the announcement of the Monetary Policy Statement (MPS) at the BB headquarters in Dhaka yesterday, central bank Governor Ahsan H Mansur said that contractionary measures would continue until the desired level of inflation is achieved.

The governor said that the central bank kept the policy rate unchanged as inflation has begun to decline slightly. Price pressures, which crossed 11 percent in July 2024, fell to 9.94 percent in January 2025.

"We are now seeing the result of the tight monetary stance," said Mansur, adding that such results usually take six months to one year to become visible in other countries. "Therefore, it would take 12 to 18 months for us to achieve the target."

Inflation declined in December and further in January this year. We expect it would drop consistently in upcoming months.— Ahsan H Mansur Governor of Bangladesh Bank.

Inflation declined in December and further in January this year. The BB governor hoped that it would continue to decline consistently in the coming months.

"Our expectation is to bring down inflation to 7-8 percent by the end of June this year and we still stand by our expectation," he said.

The central bank has been raising the policy rate for nearly two and a half years since May 2022 in its battle against spiralling prices, which have eroded people's purchasing power and affected domestic demand.

Mansur, who assumed the role of central bank governor in August last year after the political changeover, has raised the policy rate, or repo rate, three times.

In December last year, the International Monetary Fund (IMF) said that near-term policy tightening is crucial to address the emerging external financing gap and persistently high inflation.

The BB expects the country's gross domestic product (GDP) growth in the current fiscal year to decelerate to 4-5 percent, due mainly to natural and industrial disruptions.

While replying to a query, the BB governor said the current situation is not for growth, as the government is now focusing its efforts on containing high inflation.

He also said that exchange rate stability is a must for economic stability, as the inflation target cannot be achieved without it. "As a result, the central bank is now also emphasising its attention on stabilising the exchange rate."

According to the governor, the banking regulator has already been able to stabilise the exchange rate, as the balance of payments is now in a stable position.

The difference between supply and demand would not widen ahead of Ramadan, he mentioned, saying that a huge number of letters of credit (LCs) have already been opened for importing goods and essential commodities for the month of fasting.

"The seasonal demand has already slowed this month," said the BB governor.

For the second half of FY25, the target for private sector credit growth has been increased to 9.8 percent. As of December last year, private sector credit growth stood at 7.3 percent.

Credit to the public sector decreased to 17.5 percent from an actual 18.1 percent as of December last year, according to the MPS.

While highlighting good governance in the banking sector, the MPS outlined the initiative for an asset quality assessment review programme to evaluate the scope and scale of banks' tangible assets, providing essential data for future policy adjustments.

Addressing this issue, the BB governor said both banks and the regulator share the responsibility of ensuring good governance in the banking sector.

"If there is poor governance within banks, external oversight alone cannot keep them in check. If a bank deliberately mismanages itself, no regulatory body can force it to perform well. Yes, we can shut it down or take legal action, but by that time, the damage will already be done."

CONTRACTIONARY POLICY WORRIES BUSINESSES

In its immediate reaction, the Dhaka Chamber of Commerce & Industry (DCCI) expressed concern over the decision to maintain a contractionary monetary policy.

"While aimed at curbing inflation, this rigid stance hampers private sector credit growth and economic expansion. The private sector relies heavily on banks for investment and high interest rates raise production costs and fuel inflation," said the DCCI.

Ashraf Ahmed, a former president of the DCCI, said the latest MPS maintains a high interest rate and tight liquidity regime, while public borrowing is crowding out the private sector.

"Private sector credit growth is already lower than inflation. A combination of high interest rates and constrained working capital supply could possibly lead to higher non-performing loans (NPLs), economic growth of less than 4 percent and job losses."

Zahid Hussain, former lead economist at the World Bank Dhaka office, said maintaining a tight monetary policy is indeed justified, though the business community prefers a more lenient approach.

"The BB cannot afford such a risk with inflation rates remaining unacceptably high. Non-food prices have risen every month for the past three months, mirroring the trend from the previous year, indicating that inflation has become endemic."

However, he cautioned that maintaining a 10 percent policy rate for an extended period cannot be the sole strategy to blunt inflation. "Effective inflation management necessitates coordination with other economic policies, such as fiscal policy and market management."

Ashikur Rahman, principal economist at the Policy Research Institute (PRI) of Bangladesh, said further tightening of the monetary framework is unnecessary.

He said the government needs to be cautious, as ongoing political instability could lead to supply chain disruptions, which might complicate the price pressure management.

[Md Asaduz Zaman and Jagaran Chakma contributed to the report.]​

 

[Saif]

Too many weak firms get through IPO net

More than two-thirds of companies that got listed on the stock market in the last 14 years were subsequently downgraded to lower categories, with many turning into junk stocks soon after listing.

www.thedailystar.net

Too many weak firms get through IPO net

More than two-thirds of companies that got listed on the stock market in the last 14 years were subsequently downgraded to lower categories, with many turning into junk stocks soon after listing.

This has led market analysts to question their motivation for listing: were these decisions sound, or did they go public when they were already on the brink of financial meltdown?

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For a better understanding, consider the case of Sikder Insurance -- the non-life insurer that holds the record for being downgraded to junk status within just one year of its market listing.

The Dhaka Stock Exchange (DSE) expressed reservations about the listing of Sikder Insurance.

The objection was well-founded, given factors such as the insurer's heavy investment in the loss-making National Bank -- a company owned by its sponsors, and its lower-than-required investment in government T-bonds.

Both actions violate respective laws.

In 2022, Sikder Insurance invested Tk 132 crore, or 73 percent of its total assets, in National Bank, which was already classified as junk stock.

However, Insurance Development and Regulatory Authority (Idra) rules prohibit non-life insurance companies from investing more than 5 percent of their assets in a single stock.

In the same year of 2022, National Bank reported a record loss of Tk 3,260 crore, with 25 percent of its total loans classified as non-performing.

In contrast to National Bank, Sikder Insurance invested only Tk 2.5 crore, or 1.37 percent of its assets, in government treasury bonds -- far below the required minimum of 7.5 percent.

The DSE flagged in its report to the Bangladesh Securities and Exchange Commission (BSEC) that it was not convinced about the listing.

But the company was approved to go public in 2023.

After its listing in 2024, Sikder Insurance announced a 3 percent cash dividend in June, but failed to disburse it. As a result, its stock was downgraded to Z-category.

Even if the company manages to distribute the dividend, it will only be upgraded to B-category, as a minimum 10 percent cash dividend is required for A-category status.

An analysis of the insurer's 2023 financial report showed that its problematic investment in National Bank remains unchanged.

Since National Bank has not paid dividends for four years, Sikder Insurance's earnings from its primary investment source remain zero.

Besides, the company has not increased its investment in treasury bonds, continuing to flout regulatory requirements.

The Sikder case is not an isolated incident. Many other companies show similar IPO-related issues, raising questions about the stock regulator's due diligence in approving listings.

For instance, Apollo Ispat, whose flagship product "Rani Marka Dheu Tin", had already lost market relevance before its listing on the DSE.

Despite this, BSEC approved its IPO at a premium of Tk 12 per share, only for the company to decline into junk status within a few years.

On Thursday, the stock of Apollo Ispat traded at Tk 3.80.

'ROTTEN STOCKS'

Former BSEC chairman Faruq Ahmad Siddiqi said that these companies should never have been approved for listing, as their financials clearly indicated their businesses were in trouble.

According to DSE data, BSEC has approved 132 companies for listing, transitioning them from private to public entities over the last 14 years. However, nearly one-fourth of these companies have since become junk stocks.

Of the 132 companies approved, only 50 remain in A-category, while 43 have been downgraded to B-category and 38 have fallen to Z-category. One company was merged with another listed company.

Siddiqi said that the BSEC should be held accountable for approving so many questionable IPOs over the past decade.

"This is the right time to do it," he said.

He suggested that regulators should conduct case-by-case inquiries to assess whether struggling companies are failing due to genuine business challenges or mismanagement and poor financial decisions.

Companies with no recovery potential should be liquidated, he added.

Saiful Islam, president of the DSE Brokers Association, said that "the impact of these types of rotten stocks is long-term."

Even if some of these IPOs were approved under political pressure, now is the time to delist underperforming companies, he commented.

According to Islam, flawed listing regulations make delisting a lengthy and complicated process.

He called for easier listing and delisting procedures to prevent poorly performing companies from dragging down the market for years.

He added that although delisting such companies may cause losses for some investors, there is no benefit in holding stocks where major assets are at risk.

WILL THE REGULATOR TAKE NOTE?

The value of Sikder Insurance's investment in National Bank has already dropped by 50 percent since 2022.

Md Jakir Hossain, a stock investor, admitted that he did not analyse the company's financials before investing in its IPO.

He assumed that a company wouldn't become junk overnight and that it should take at least a few years to be downgraded.

Contacted, BSEC spokesperson Rejaul Karim said that insurance companies are required by law to be listed and that Sikder Insurance met the public issue rules at the time of approval.

"In IPO approval, the regulator sees whether the company followed the public issue rules properly," he said.

However, he admitted that BSEC is now more cautious to prevent poor-performing companies from receiving IPO approvals.

In 2021, BSEC intervened by restructuring the boards of several underperforming companies, but none of them have fully recovered.

Karim said if the stock market taskforce formed by the interim government makes recommendations regarding these struggling companies, the regulator will analyse the cases and take action.

Abdur Razzak, company secretary of Sikder Insurance, said the insurer has already paid most of its announced dividend and expects to be upgraded to B-category soon.

He admitted that the company -- whose stock traded at Tk 21.90 on Thursday -- has not received any dividends from its major investment in National Bank but defended the decision not to sell its shares, citing the current low market price.

He also said that their buying price was around Tk 10 per share, while National Bank shares are now trading below Tk 5.​

 

[Saif]

Bangladesh calls for reforms in global financial system

Says Bangladesh’s permanent representative to the UN

www.thedailystar.net

Bangladesh calls for reforms in global financial system
Says Bangladesh’s permanent representative to the UN

Bangladesh has called for a reformed international financial system and enhanced technology support to address critical social development needs.

Ambassador Salahuddin Noman Chowdhury, Bangladesh's permanent representative to the UN, made the appeal while addressing the 63rd session of the Commission for Social Development (CSocD63) at the UN Headquarters in New York today.

He underscored the need for international cooperation to bridge existing gaps and ensure sustainable and inclusive development.

Highlighting Bangladesh's key national initiatives under the current interim government led by Muhammad Yunus, the ambassador reaffirmed the country's commitment to inclusive policies aimed at advancing social development.

The ambassador also stressed the government's focus on eliminating poverty, tackling unemployment, and reducing net carbon emissions.

He outlined Bangladesh's efforts to combat climate change through adaptation and mitigation programmes despite limited resources.

Additionally, he called for renewed global commitments in financing, technology transfer, and capacity-building to create a just, inclusive, and resilient future.

The 63 session of the Commission for Social Development (CSocD63) is taking place at the United Nations Headquarters in New York from February 10 to 14.

Bangladesh is a member of the commission for the 2023-2027 term.​

 

[Saif]

Bangladesh poised for record remittance inflow this year: Governor

Bangladesh is on track to set a record for inward remittances through legal channels this year, as expatriates regain trust in the banking system, said Bangladesh Bank Governor Dr Ahsan H Mansur. The governor made the remarks while addressing concerns over recent media reports alleging loan irregu

thefinancialexpress.com.bd

Bangladesh poised for record remittance inflow this year: Governor
UNB
Published :
Feb 12, 2025 20:26
Updated :
Feb 12, 2025 20:26

Bangladesh is on track to set a record for inward remittances through legal channels this year, as expatriates regain trust in the banking system, said Bangladesh Bank Governor Dr Ahsan H Mansur.

The governor made the remarks while addressing concerns over recent media reports alleging loan irregularities involving an independent director of Islami Bank Bangladesh PLC.

Following an investigation, Bangladesh Bank found no evidence to support the claims against Abdul Jalil, an independent director of the bank.

“Publishing reports in newspapers is not a probe that proves someone guilty. Sometimes, misinformation and lack of proper verification lead to misleading reports,” Dr. Mansur told UNB on Wednesday.

He suggested that vested groups opposing banking sector reforms might be spreading such propaganda.

He, however, emphasised the positive trajectory of the banking sector, particularly in remittance collection. “We have confidence in the current board of Islami Bank. The bank has made a remarkable turnaround and is excelling in areas such as deposit growth, investment, and remittance collection.”

Dr Mansur expressed optimism that remittance inflows through official channels would hit a new high this year. “Expatriates now have renewed confidence in the banking system, and this will reflect in record-breaking remittance figures,” he added.

About small depositors in some troubled banks, the governor reassured that Bangladesh Bank is working on policies to safeguard depositors’ interests.

“There is no reason to worry about customer deposits in any scheduled bank. We are working on long-term solutions, but people need to be patient for a steady recovery,” he said.

With increasing trust in the banking system and ongoing reforms, Bangladesh is expected to see strong economic gains from its remittance-dependent financial sector.​

 

[Saif]

Interim govt adopting wrong policies at wrong times: Mustafa K Mujeri

The eminent economist said, 'It has been six months since the interim government took over. Unfortunately there has been almost no success in the financial sector'

en.prothomalo.com

Interim govt adopting wrong policies at wrong times: Mustafa K Mujeri
Staff Correspondent
Dhaka
Published: 12 Feb 2025, 21: 24

Jago News 24 organised a roundtable under the title “Burden of additional taxes on consumers: What to be done” at the MCCI conference room in the capital’s Gulshan Prothom Alo

Bangladesh Institute of Development Studies (BIDS) for director general and former chief economist at Bangladesh Bank, Mustafa K Mujeri has remarked that the current interim government is adopting wrong policies at wrong times.

The eminent economist said, “It has been six months since the interim government took over. Unfortunately there has been almost no success in the financial sector of the country in this time. The economy has largely stagnated due to some core problems such as high inflation rate and slow pace of financial growth. There has not been much success in terms of other problems we have. As a result the economy is yet to bounce back.”

Mustafa K Mujeri further said, “There is a common pattern of the economic policies adopted so far by the interim government. And that is adopting wrong policies at the wrong time. The consequences won’t be good in the coming days.”

He came up with these remarks at a roundtable under the title “Burden of additional taxes on consumers: What to be done” organised by news portal Jago News 24 at the MCCI conference room in the capital’s Gulshan. Centre for Policy Dialogue (CPD) research director Khandaker Golam Moazzem presented the keynote at the roundtable.

Economist Mustafa K Mujeri said, “Monetary policy alone cannot control inflation in a country like Bangladesh. The Bangladesh Bank (BB) has raised the policy interest rate to more than 10 per cent. There hasn’t been any impact of this initiative on inflation. Inflation is pursuing its own course. Rather, it is doing harm to the country’s economy. It is also hampering the business and production too. As a result the amount of loss is rising.”

The former BIDS director general said, “The policies being adopted by the interim government have no correlation. The government is not thinking much before taking up any policy. The decisions are sudden. The decision to increase VAT is one such decision. It was a sudden decision. The condition imposed by the International Monetary Fund (IMF) played a key role behind the decision. Finance ministry officials think increasing VAT is the easiest way to increase revenue. They think additional VAT will increase the revenue by Tk 120 billion.”

He further said, “The prescriptions provided by the IMF or the World Bank since the 80s haven’t worked. Each of those failed. And so is going to happen this time too.”

The processes must be proper for the economy to bounce back, he said adding “The economy must be dynamic to increase revenue. We will never be able to increase revenue collection by stalling the economy.

Bangladesh Auto Biscuit and Bread Manufacturers Association President Shafiqur Rahman Bhuiyan raised the demand to keep food products VAT-free.

“How much to reduce the amount of biscuits in the packet to adjust with the additional VAT? How much to decrease the size of the packet. If things continue to be like this, then we will have to sell empty packets one day.”

Pran-RFL group chairman and CEO Ahsan Khan Chowdhury said the country would run smoothly if the VAT rate was rational.

He said, “Traders and businesspersons are important to move the country forward. The government needs to enhance contacts with businesspersons and conglomerates.”

Economist MM Akash said the main goal of the government was to reduce the price hike. As they failed to do that despite various efforts, they reduced the tariff. But instead of decreasing the prices of daily commodities, it created a revenue deficit. Following that, the IMF said that it would not disburse the fourth installment if there is a revenue deficit. In these circumstances, the government imposed additional VAT on some products, which created more pressure on low and middle income people.

Jago News Acting Editor KM Ziaul Haque moderated the roundtable discussion, which was attended by Policy Exchange Bangladesh chairman M Masrur Riaz, former National Board of Revenue (NBR) member Rezaul Hasan, BKMEA president Mohammad Hatem, former Dhaka Chamber president Ashraf Ahmed, former BGMEA director Mohiuddin Rubel, Consumers Association of Bangladesh (CAB) vice president Nazer Hossain, ACI Foods chief business officer Faria Yasmin, SMC Enterprise Limited managing director Saif Uddin Nasir, Bangladesh Agro Processors Association (BAPA) president MA Hashem, ERF president Daulat Akhter Mala, former banker Saiful Hossain and Supermarket Owners Association general secretary Md. Zakir Hossain.=​