[🇧🇩] 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.​

 

[Saif]

Balancing revenue goals and growth

As the government prepares the national budget for the upcoming fiscal year, its pre-budget consultation with trade bodies brought the longstanding issue of tax collection into sharp focus. This is unsurprising, given that businesses account for the majority of the country's revenue. The consultati

thefinancialexpress.com.bd

Balancing revenue goals and growth
Published :
May 04, 2025 00:20
Updated :
May 04, 2025 00:20

As the government prepares the national budget for the upcoming fiscal year, its pre-budget consultation with trade bodies brought the longstanding issue of tax collection into sharp focus. This is unsurprising, given that businesses account for the majority of the country's revenue. The consultation took place against the backdrop of significant pressure on the National Board of Revenue (NBR) which has fallen short of its revenue collection target by Tk 650 billion in the first nine months of the current fiscal year. This underperformance is particularly significant as the International Monetary Fund (IMF) has reportedly linked the release of pending tranches from its $4.7 billion loan package for Bangladesh to improved revenue performance, among other conditions. This has left the government caught between two opposing demands, one from tax authorities seeking tighter regulations to increase revenue, and the other from the business community calling for relief from tax burdens.

During the consultation hosted by the NBR and the FBCCI, business leaders from textiles, garments, steel and SME sectors detailed the various obstacles they face. They emphasised how escalating operational costs, driven by rising energy prices, bureaucratic delays and stringent tax regulations are stifling entrepreneurship, even in industries where the country holds a competitive advantage. The president of the Bangladesh Textile Mills Association (BTMA), for instance, alleged that customs officials coerced businesses into paying bribes to release bank guarantees required for clearing goods at ports. Similarly, the president of the Steel Manufacturers Association cited bureaucratic inefficiencies as a major deterrent to investment, while the Meghna Group's chairman pointed to their $600 million investment in Cumilla EPZ lying underutilised due to two years of delays in securing utility connections. The concerns voiced by the business community are far from groundless. Their calls for policy consistency, reduced harassment and affordable utilities are not just requests for favours but essential prerequisites for industrial development. There can be no doubt that issues such as corruption and administrative bottlenecks not only inflate operational costs but also erode investor confidence and deter both domestic and foreign capital.

Seeking respite from current tax pressures, business leaders proposed several measures including raising the tax-free income threshold for individuals, reducing the source tax on all exports to 0.50 per cent, and establishing a uniform but lower VAT rate on local goods to support SMEs. While these proposals reflect the difficulties faced by businesses, the government has limited scope for concessions. The finance adviser present at the consultation rightly noted that significant tax relief is unfeasible given the country's growing deficits and debt obligations. With limited external borrowing options and development partners pushing for stronger domestic revenue mobilisation, the government has little fiscal freedom. In this context, the administration's cautious stance is understandable. That said, the government can and must address operational hurdles facing the private sector to improve the overall ease of doing business.

The government, therefore, faces a delicate and complex balancing act. A purely revenue-driven approach that overlooks the genuine challenges faced by businesses risks harming long-term economic growth and, ironically, future tax receipts. Conversely, excessive leniency could compromise essential revenue generation. As the saying goes, the art of taxation lies in plucking the goose so as to obtain the most feathers with the least hissing. The upcoming budget must reflect this wisdom by reducing structural barriers and cracking down on corruption, all the while meeting revenue targets without overburdening businesses. Only through such a balanced approach can the government sustain economic growth and secure the resources needed for national development.​

 

[Saif]

The political and economic reset process

The collapse of the Sheikh Hasina regime and her hasty escape to India on August 5 last year were shocking in their speed but not surprising. She has been residing in New Delhi since the day she fled from Bangladesh. Also, on that day, one of India's geopolitical nightmares became a reality. Durin

thefinancialexpress.com.bd

The political and economic reset process
Muhammad Mahmood
Published :
May 04, 2025 00:04
Updated :
May 04, 2025 00:04

The collapse of the Sheikh Hasina regime and her hasty escape to India on August 5 last year were shocking in their speed but not surprising. She has been residing in New Delhi since the day she fled from Bangladesh. Also, on that day, one of India's geopolitical nightmares became a reality.

During her 15-year rule, India has enjoyed very close ties with her authoritarian regime. India greatly emboldened her to consolidate her repressive regime to achieve its objectives in Bangladesh. In fact, India's unqualified support for Hasina clearly demonstrates complicity.

India's over-investment in Hasina is not only very symptomatic of its hegemonic approach to its neighbours but also its lack of realisation that it is a poor country lacking economic strength to influence events in its neighbourhood, and geographic size alone cannot do the trick. About two-thirds of India's population has an annual income comparable to that of Sub-Saharan countries. In fact, India now has a strained relationship with all its neighbours except Bhutan.

Since August 8 last year, an interim government led by Nobel Laureate Muhammad Yunus has been in power in Dhaka. The government has been grappling with a host of challenges, from high inflation and unemployment to delays in implementing crucial reforms across the judiciary, political system, and economy. These challenges are primarily due to ongoing law and order issues, and there is a growing concern about the resurgence of the criminal syndicate run by ousted Hasina.

Many Bangladeshis view Hasina's downfall as a 'second liberation', a clear indication of the public's fervent desire for significant change. This sentiment was echoed by a student leader who described the revolution as a 'once in a lifetime opportunity' to bring about systemic change in the country's political system and culture. The public's appetite for change is palpable, and it is driving the current political momentum.

The deeper cause of the uprising was far broader than the removal of the job quota system in public service appointments. The discontent also extended to include failure to deal with untamed inflation and high and rising unemployment amid the Hasina regime's growing concentration of power and impunity. Yunus and his colleagues still have widespread support, but popular expectations are double-edged.

Bangladesh's democratic transition remains fragile, challenged by weak law enforcement and economic instability. Massive protest rallies and vigilante and reprisal attacks on the Hasina regime's supporters, including on collaborator newspapers and other media outlets along with collaborator journalists, signal a population that has learned the power of direct action. This amplifies the state's inability to address public grievances and the fact that the government is without full authority to effectively deal with collaborators of Hasina's criminal syndicate in the various branches of the government and the public and political arenas.

But even after eight months in power, there remains a mix of unease about the future and some optimism that Yunus can get the economy back on track while spearheading political reforms needed to rebuild a durable democratic system and prevent another dictator from emerging. It is a monumental challenge.

Historically, the military has played a significant role in Bangladesh's politics. The current situation, with its political instability, has raised concerns that the army may decide to take a more direct role in governance.

Also, the interim government so far has failed to effectively rebut a vigorous campaign of misinformation and disinformation originating from India on the plight of Hindus in Bangladesh, given that reprisal attacks on the Awami League (AL) (political arm of Hasina's criminal syndicate) supporters and the police also included many from the Hindu community who have traditionally been strong supporters of the AL. The fake news published in the Indian media on the plight of Hindus was aimed at inflaming anti-Muslim sentiment (which is the staple diet of the Hindu supremacist prime minister Narendra Modi and his party, BJP) in India and undermining Bangladesh's interim government.

India's supposedly secular constitution stands in complete contradiction to its treatment of minorities, especially Muslims. The ruling Hindu supremacist BJP oversees systemic marginalisation and discrimination against Indian Muslims who live under constant threat of violence. This hostility extends beyond online hate speech and manifests in real-life incidents. No government in Bangladesh ever highlighted this aspect of Hindutva India under the BJP rule, while India is falsely playing the Hindu card in Bangladesh, which has bipartisan support in India.

Till now, the political situation in Bangladesh remains fragile and fluid. Bangladesh is currently undergoing a period of political and economic reset under the leadership of Yunus following the ousting of Sheikh Hasina. Since August last year, the democratic process has taken the form of a series of reform commissions focusing on the constitution, election, public administration and anti-corruption, judiciary, police, media, industry and women's rights. An economic white paper committee was instituted to recommend institutional reforms needed to forestall the return of the authoritarian regime of the past.

While the economic white paper has delivered its first draft, other reports are coming out in a very slow motion, making it impossible to figure out the nature and the extent of reforms to take place and in what sequence these proposed reforms will be implemented. In resetting the political landscape, the Constitutional Reform Commission has proposed sweeping reforms to dismantle authoritarian legacies through bicameralism, term limits for the head of government, checks on executive power, and other reform measures to ensure long-term democratic stability. However, many are expressing concern that the interim government is being hemmed in by various political interests at home and abroad, and they are also worried that the pace of reforms has slowed down.

An election is expected to be held anytime between late 2025 and mid-2026, but strong voices are being raised to complete all reform programs before an election can take place, including a constituent assembly election to adopt the new constitution to precede before a general election to form a parliament. They also support the interim government headed by Yunus to continue for five years to complete the reform agenda. At this point, there appears to be significant support for this position than a hurried election which will likely bring the Bangladesh Nationalist Party (BNP) to power, a party widely considered to be the other side of the same coin with the AL being on one side.

People supporting the 5-year tenure of the Yunus administration also point out that the interim government derives its real legitimacy from the popular mass support accorded to it in the wake of a mass uprising which overthrew the repressive government run by Hasina's criminal syndicate under the political banner of the AL.

Hasina has left behind a terrible economic mess that the interim government needs to deal with. Also, the corrupt and crony economic system that flourished under the Hasina regime has caused significant structural damage to the economy, creating a formidable challenge for the interim government. Her massive corruption involving mega-projects also extends to one of the biggest bank robberies in the history of central banks around the world in 2016, where US$101 million was transferred to different countries by hacking the central bank system. She, her family members and cronies have also embezzled from the banking system and then transferred an estimated amount of US$150 billion out of the country.

Bangladesh has achieved, as claimed, an annual average growth rate of about 6.5 per cent over the last decade and a half. However, the growth rate has slowed down considerably since the onset of the Pandemic and the Russia-Ukraine conflict. The current macroeconomic crisis is manifested in slowing gross domestic product (GDP) growth, high inflation and unemployment, looming debt burden and a banking system in deep trouble. Multilateral and regional organisations such as the World Bank (WB), International Monetary Fund (IMF) and Asian Development Bank (ADB) all have downgraded Bangladesh's GDP growth rate for 2025 to 3.3 per cent, 3.76 per cent and 3.9 per cent, respectively. But they all provided a better growth forecast for 2026.

A large number of economic problems are systemic. Therefore, reforms are urgently needed to address systemic economic problems. Urgent actions needed include dealing with the problems facing the banking and finance sector, such as excessively high loan default rates, expanding the very low direct tax base, including increased compliance, and increasing economic openness to address the balance of payments and reserves problems as well as to attract foreign direct investment (FDI).

Many other economic issues also require attention. Poverty and unemployment are prevalent, along with a lack of attention to gender and environmental issues. About 40 per cent of the country's young population lacks reliable employment, and a balance-of-payments crisis looms large due to capital transfers out of the country made by the crony class, and this is directly related to high levels of political and bureaucratic corruption. However, the foreign reserves situation appears to be improving, but it is not yet at a sustainable level. The ready-made garments (RMG) industry made the country's fortune but has miserably failed to diversify beyond it, and the failure to diversify will prove very costly for the country's future.

Income inequality has steadily increased in Bangladesh, with the Gini coefficient, a measure of inequality, rising from 0.458 in 2010 to 0.50 in 2022. With rising income inequality coupled with stagnant to declining household income along with high levels of youth and graduate unemployment and very widespread underemployment clearly point out that whatever economic growth achieved so far, especially under the Hasina regime, cannot be considered as inclusive growth.

To escape poverty and squalor and to financially support families in Bangladesh, close to almost 10 million Bangladeshis are now living and working abroad. Annual remittances transferred to Bangladesh were $27 billion in 2024. The Bangladesh state has failed to provide employment at home for these people, rather encouraged and still encouraging people to seek employment in overseas countries. In their journey overseas to seek employment, quite often, these Bangladeshis land in countries with a serious lack of human rights with no labour rights or minimum wage guarantee.

The economic factor will ultimately be the key factor in the Yunus-led interim government's longevity. Now, to get the economy on a sustained growth trajectory, the interim administration must ensure political stability, law, and order, build enhanced state capacity, and improve governance. The government must provide a stable and predictable policy environment with a firm commitment to economic openness and growth. At the same time, the interim government must undertake required reform measures to attract investment, including FDI, with an emphasis on a fairer distribution of income unencumbered by the tentacles of bureaucracy, which need to be credibly put in check by political and legal institutions.​

 

[Saif]

ADB may back Bangladesh budget with IMF nod

The Asian Development Bank (ADB) has signalled to consider a ‘letter of comfort’ from the International Monetary Fund (IMF) to extend budget support for Bangladesh, said Finance Adviser Dr Salehuddin Ahmed. ADB Vice President Yingming Yang said this in a meeting with the finance advise

thefinancialexpress.com.bd

ADB may back Bangladesh budget with IMF nod
Doulot Akter Mala from Milan, Italy
Published :
May 04, 2025 19:14
Updated :
May 04, 2025 20:12

The Asian Development Bank (ADB) has signalled to consider a ‘letter of comfort’ from the International Monetary Fund (IMF) to extend budget support for Bangladesh, said Finance Adviser Dr Salehuddin Ahmed.

ADB Vice President Yingming Yang said this in a meeting with the finance adviser on Sunday at the 58th ADB annual meeting sideline events in Milan, Italy.

Talking to the FE, at the meeting premises, Dr Salehduddin said signing an agreement with the IMF may not be so important if the ADB gets a green signal from the IMF on the macroeconomic stability of Bangladesh.

The finance adviser said as the IMF does the due diligence on macroeconomic issues, its positive signal is important for budget support of the ADB.

“The scope of a soft landing has already been squeezed gradually as we have exhausted it,” he said.

Bangladesh has proposed to go for Ordinary Capital Resources (OCR), but ADB found it has limited scope as other countries are also demanding the same, he added.

Still, the ADB high-ups have assured us to consider the proposal, added Dr Salehuddin.

“We told the ADB that our negotiation with the IMF is going on and about to reach a decision,” he added.

ADB wants Bangladesh to sort out the IMF issues, said the adviser.

“We won’t rush to signing an agreement accepting the IMF’s loan conditions,” said the finance adviser.

Bangladesh’s economic condition has improved in the last four months; its banking fundamentals and private sector have improved, he added.

ADB wants to support our infrastructural development besides budget support, the FA said.

It also wants to help us with reforms, banking and project support.

“We will be able to present a manageable, realistic budget,” he said, adding that the economy has the strength in case of non-availability of budget support from the IMF.​

 

[Saif]

Remittance inflow rises by 34.6pc in April

The country’s remittance inflow witnessed a remarkable year-on-year growth of 34.6 percent, reaching US$2,752 million in April. According to the latest data of Bangladesh Bank (BB), the country logged a total of $2,044 million in remittances during the same period last year, reports BSS. Ex

thefinancialexpress.com.bd

Remittance inflow rises by 34.6pc in April
FE Online Desk
Published :
May 04, 2025 18:00
Updated :
May 04, 2025 18:00

The country’s remittance inflow witnessed a remarkable year-on-year growth of 34.6 percent, reaching US$2,752 million in April.

According to the latest data of Bangladesh Bank (BB), the country logged a total of $2,044 million in remittances during the same period last year, reports BSS.

Expatriates have sent remittances of $24,537 million during the July-April (2024-25) of the current fiscal year, which was only $19,119 million during the same period of the previous fiscal year.​

 

[Saif]

Bangladesh deepens cooperation with key international financial partners: Finance ministry

Bangladesh is deepening cooperation with key international financial partners through high-level bilateral meetings, the finance ministry said Monday. On the sidelines of the 58th Annual Meeting of the Asian Development Bank (ADB) in Italy, Bangladesh has strengthened its development cooperation w

thefinancialexpress.com.bd

Bangladesh deepens cooperation with key international financial partners: Finance ministry
FE ONLINE REPORT
Published :
May 05, 2025 17:23
Updated :
May 05, 2025 17:23

Bangladesh is deepening cooperation with key international financial partners through high-level bilateral meetings, the finance ministry said Monday.

On the sidelines of the 58th Annual Meeting of the Asian Development Bank (ADB) in Italy, Bangladesh has strengthened its development cooperation with key international financial partners through high-level bilateral meetings, says a press release.

Finance Adviser Dr Salehuddin Ahmed on Monday held a bilateral meeting with Nadia Calvino, president of the European Investment Bank (EIB).

The meeting focused on expanding EIB’s ongoing support in Bangladesh’s priority sectors.

The EIB, the primary lending institution of the European Union (EU), has been engaged in Bangladesh since 2000 under a framework agreement with the Government of Bangladesh.

To date, EIB has invested nearly 635 million euro in six ongoing projects across the health, water supply, transport, and communication sectors.

Although its core focus is on EU member states, the EIB plays a vital role in EU development cooperation with over 160 countries worldwide, particularly in areas such as climate action, innovation, infrastructure, SMEs, and skill development, the press release said.

The EIB has committed to providing 350 million euro in framework loans to support renewable energy projects in Bangladesh.

The EU will also contribute an additional 45 million euro in grant funding. These projects are aimed at enhancing environmental sustainability and contributing to climate change mitigation and adaptation, aligning with Bangladesh’s sustainable development goals.

During the discussion, the finance adviser emphasised the urgent need for greater investment in human capital development and infrastructure to address the dual challenges of graduating from Least Developed Country (LDC) status and avoiding the middle-income trap.

He called on the EU and its institutions to provide enhanced concessional or subsidised financing in strategic sectors critical to Bangladesh’s development trajectory.

The finance adviser also held a bilateral meeting with representatives of the Japan Bank for International Cooperation (JBIC).

JBIC has long been a valued partner in Bangladesh’s development journey through financing and strategic collaboration. Its investments include the DAP-II Fertiliser Plant ($715.6 million, now fully repaid), the Ghorasal Fertiliser Plant, and the Meghnaghat Power Plant ($265 million, co-financed with ADB).

Additionally, the Bangladesh delegation held bilateral meetings with Yingming Yang, Vice President (South, Central, and West Asia) of ADB, the Vice President of the OPEC Fund, and Michael Kremer, Vice President of the Agriculture Innovation Mechanism for Scale (AIM for Scale). In these meetings, issues of mutual interest were discussed by both parties.

These engagements emphasise Bangladesh’s commitment to deepening strategic partnerships with key global financial institutions to accelerate sustainable and inclusive growth.​

 

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GED projects gradual economic recovery for Bangladesh

The General Economics Division (GED) of the Planning Commission has projected a gradual economic recovery for Bangladesh, buoyed by favorable trends in exports, remittances, a stable exchange rate, and easing inflationary pressures. In its April 2025 Economic Update and Outlook, GED noted that imp

thefinancialexpress.com.bd

GED projects gradual economic recovery for Bangladesh
Published :
May 07, 2025 18:46
Updated :
May 07, 2025 18:46

The General Economics Division (GED) of the Planning Commission has projected a gradual economic recovery for Bangladesh, buoyed by favorable trends in exports, remittances, a stable exchange rate, and easing inflationary pressures.

In its April 2025 Economic Update and Outlook, GED noted that improved investors’ confidence-particularly following the successful Bangladesh Investment Summit 2025-along with a moderately tight but accommodative monetary policy, is expected to further support industrial growth, reports BSS.

“Economic recovery is expected to be bolstered by a favorable external sector with positive exports and remittances growth, a stable exchange rate and declining inflationary pressures,” said the GED outlook.

The report highlighted the need to reduce commercial lending interest rates to stimulate investment. GED emphasised the importance of tackling non-performing loans and boosting banking sector efficiency to improve access to credit.

It also stressed the government’s ongoing efforts toward fiscal consolidation, which are expected to strengthen fiscal accounts. “Enhancing efficiency in the selection of development projects-prioritizing sustainability-will increase the prospects for quality growth,” the report added.

While inflation is expected to remain stable between 8.0% and 9.0% during April and May 2025, it remains a concern. Food inflation, which surged to 10.65% in FY2023-24, eased to 8.93% in March 2025 after the availability of winter vegetables improved supply.

Key contributors to overall inflation in March included rice (14.62%), fish (11.58%), and vegetables (6.08%). Notably, the prices of brinjal (17.12%), medium rice (16.73%), and hilsa (11.37%) drove up food costs-partly due to seasonal demand during Ramadan and the Bengali New Year.

However, rural areas continue to face higher inflation, highlighting the need for more efficient food supply chain management.

Bangladesh’s external sector showed signs of strength in March 2025, with remittances reaching a record $3.29 billion-up 65% year-on-year-boosted by Eid-related transfers and a shift to formal remittance channels following regulatory tightening.

From July 2024 to March 2025, total remittances climbed to $21.77 billion, compared to $16.69 billion during the same period of the previous year. Foreign exchange reserves rose accordingly, now standing at approximately $25.62 billion.

Exports also saw an 11.44% year-on-year increase, reaching $4.25 billion, largely driven by the readymade garment sector.

Bangladesh’s immediate positive response to Trump’s reciprocal tariff has worked well and brought a sigh of relief for exporters.

Bangladesh’s diplomatic engagement with the U.S. over reciprocal tariffs has resulted in a temporary reprieve, with the country agreeing to increase imports of American agricultural products.

Despite external gains, investment activity remains subdued. In February 2025, deposit growth slowed to 7.88%, while private sector credit growth was just 7.15%-among the lowest in recent years.

Contributing factors included high lending rates, political and economic uncertainty, and weakened bank health, with around 10 banks seeing diminished lending capacity due to irregularities. Increased government borrowing from commercial banks-up 60% year-on-year-has further strained private sector credit availability.

In March, the Taka traded within a narrow band of Tk 121.5755-121.9542 per U.S. dollar, reflecting relative exchange rate stability despite growing demand for LCs and foreign currency.

Remittances helped stabilize the currency, with the improved foreign reserve position enhancing the outlook for the external sector.

After a weak first quarter, with GDP growing just 1.96% due to industrial slowdown and floods affecting agriculture, the second quarter of FY2025 saw a rebound to 4.48%.

Growth was driven largely by the industrial sector, which grew 7.1% in Q2, led by manufacturing (8.49%), mining, and quarrying (8.01%), and wholesale and retail trade (6.63%).

While the economic recovery is underway, GED underscores the need for accelerated reforms, investment stimulation, and structural improvements to sustain the momentum.​

 

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Inflation drops from 14.5pc to 8.5pc in 9 months: BB Governor Mansur

Bangladesh Bank Governor Ahsan H Mansur on Thursday said that the country's inflation rate has dropped significantly – from 14.5 per cent to 8.5 per cent-over the past nine months. The governor made the remarks while speaking as the chief guest at the opening ceremony of the Banker SME Women

thefinancialexpress.com.bd

Inflation drops from 14.5pc to 8.5pc in 9 months: BB Governor Mansur
UNB
Published :
May 08, 2025 19:17
Updated :
May 08, 2025 19:17

Bangladesh Bank Governor Ahsan H Mansur on Thursday said that the country's inflation rate has dropped significantly – from 14.5 per cent to 8.5 per cent-over the past nine months.

The governor made the remarks while speaking as the chief guest at the opening ceremony of the Banker SME Women Entrepreneurs' Gathering, Product Exhibition and Fair, held at the Bangla Academy premises in the capital.

He expressed optimism that inflation could fall further by 4.0 to 5.0 percentage points if the government maintains consistent efforts and stable policies.

The SME and Special Programmes Department of Bangladesh Bank organised the event.

According to the latest estimates from the Bangladesh Bureau of Statistics (BBS), overall inflation stood at 9.17 per cent in April, down from 9.35 per cent in March. Both food and non-food inflation declined last month. However, the average annual inflation remains above 10 per cent.

Bangladesh Bank Deputy Governor Nurun Nahar, Executive Director Md Khasru Parvez, City Bank MD and CEO Masrur Arefin, and Naushad Mostafa, Director of the SME and Special Programs Department, also spoke at the event.

"If we keep printing money and expect inflation to drop, that won't work. We need to adopt a strict stance. Inflation will take time to ease, but it is on the right track and will continue to decline gradually." Governor Mansur said.

Referring to the current figures, he said, "Food inflation was at 14.5 per cent, which has now come down to 8.5 per cent. Non-food inflation, which was over 12.5 per cent, is now slightly above 9.0 per cent."

"I am hopeful that it will fall further. If we maintain policy stability and put in the effort, reducing inflation to 4.0 to 5.0 per cent is achievable – and that would be a satisfactory outcome for all," he added.

Addressing gender disparities in financial access, Dr Mansur said women are still not receiving their rightful share of banking services.

"Women are getting only 6.0 per cent of total disbursed loans in the banking sector. This is far from realistic. There are many obstacles for women in accessing loans. We must find ways to overcome these and move women forward. Financial awareness among women also needs to improve," he said.

The governor went on to say, "We are committed to supporting women entrepreneurs, but not merely by expanding central bank funds, as that would require creating new money. Instead, commercial banks must lend from their own resources, recognising women's rights in financial inclusion."

The ongoing four-day fair, organised by Bangladesh Bank to boost the participation of women entrepreneurs, will run until May 11. A total of 68 women entrepreneurs from various districts are showcasing their products at the event.

On the final day, six women entrepreneurs will be honoured for their achievements.​