United News of Bangladesh

The newly elected BNP government will take necessary steps to defer Bangladesh’s graduation from the Least Developed Country (LDC) status, Commerce Minister Khandaker Abdul Muktadir said on Wednesday. “We will take all required measures to defer the LDC graduation. Work on the matter has already begun,” Muktadir told reporters at the Secretariat on his first day in office. Muktadir said the government is keen to defer the graduation timeline and will do whatever is necessary to that end. The initiative has started from the Ministry of Commerce and will be pursued in coordination with the Economic Relations Division (ERD) to expedite required communications and procedures. Referring to long-standing demands from business leaders, he said the issue is being treated with utmost priority. “There is no obligation to send a letter within the first week, but we have started working on it from today.” On the recent slowdown in exports, the Commerce Minister said Bangladesh’s export basket remains highly concentrated, with nearly 85 percent of total exports dependent on a single product. To overcome the vulnerability, Muktadir stressed the need for diversification by adding new products and expanding into new markets. The private sector, particularly investment-oriented entrepreneurs, will receive necessary support, he said. Responding to concerns over the Ramadan market, Muktadir said stable supply would ensure market stability. “The government has adequate stocks of essential commodities for Ramadan and the subsequent period, with sufficient supplies also in the pipeline. There is no reason to panic over the Ramadan market.” Explaining the price hikes of certain items at the beginning of Ramadan, he said the increases are often driven by a one-off surge in demand as consumers tend to purchase for the entire month at once, temporarily impacting the retail market. “Such impact does not last long.” Finance Minister Amir Khosru unveils ambitious reform plan on day one Asked whether the onset of Ramadan immediately after the new government assumed office poses a major challenge, Muktadir said managing the holy month will be a crucial test for the government. “We must meet people’s expectations. There is no alternative to success.” On foreign and domestic investment, the minister noted that investment does not flow amid uncertainty. A stable environment is the primary condition for attracting investment, as investors seek assurance of expected returns against their capital and labour. Muktadir said Bangladesh has a large working-age population, with around 2 to 2.2 million people entering the labour market every year. Investment stagnation over the past two to three years has created significant pressure and failure to address the situation promptly could pose serious risks to employment and the broader economy. State Minister for Commerce Md Shariful Alam and Commerce Secretary Mahbubur Rahman were present. Later, the Commerce Minister exchanged views with senior officials and heads of departments under the ministry.

The Asian Development Bank (ADB) and the Government of Bangladesh on Tuesday (November 28, 2023) signed a $100 million loan agreement to improve computer science, software engineering, and information technology (IT) programs in three universities in Bangladesh. Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), and Edimon Ginting, Country Director, ADB, signed the loan agreement on behalf of Bangladesh and ADB, respectively, at a ceremony at ERD in Dhaka. “This project will help accelerate fourth industrial revolution technology adoption, realize the vision of Digital Bangladesh, and enable the country to reap the demographic dividend by creating digitally qualified young human resources and entrepreneurs,” said ADB Country Director Edimon Ginting. “This new initiative builds on ADB’s ongoing skills development support through industry partnerships to increase competitiveness and foster innovation,” he said. Read: ADB to provide $200 million to promote energy efficiency, transition in Bangladesh The Improving Computer and Software Engineering Tertiary Education Project will upgrade the computer science and engineering, software engineering, and information technology degree programs of the leading public universities in Bangladesh. The universities receiving the funding are: Bangladesh University of Engineering and Technology (BUET), University of Dhaka (DU), and Jashore University of Science and Technology. These programs will adopt blended learning techniques and integrate the latest technologies such as artificial intelligence, robotics, and internet of things. These programs will seek international accreditation to ensure that students get updated curricula that adhere to international standards. Read: ADB to lend $336.5 million to Bangladesh to help develop vaccine production ADB will support the establishment of modern classrooms and laboratories, collaboration and start-up spaces, and auxiliary facilities in the three universities. These facilities will incorporate climate- and disaster-resilient designs, energy- and water-saving features, and will include women-friendly amenities and services. The universities will develop capacities of teachers to be proficient in new instructional approaches and emerging digital technologies. The students and teachers from the three and other universities will also work with industry partners to come up with innovative solutions through joint research and development. Mandatory internship opportunities, career counseling, and industry placement will be provided to undergraduate students, particularly for women. Read: ADB provides $90 million for clean water, sanitation services in the Hill Tracts

A team of the International Monetary Fund (IMF) is due to arrive in Dhaka on April 25 to discuss the progress in the use of the first tranche of its US$4.7 billion loan programme for Bangladesh and the release of the second installment. The Ministry of Finance sources told UNB on Wednesday that during its April 25 to May 2 visit the mission will hold meetings with the officials of the Ministry of Finance's Finance Division, Financial Institutions Division, Economic Relations Division (ERD), Bangladesh Bank, and National Board of Revenue (NBR). IMF Asia and Pacific Division Head Rahul Anand will lead the team comprising three to four members, the ministry sources said speaking on condition of anonymity. Read More: World Bank spring meeting begins in Washington today, announcement on $50bn allocation to face global crisis likely Bangladesh received the first tranche of US$476.2 million of the $4.7 billion loan approved by the IMF on January 30. The entire amount of the loan will be paid in seven installments in three and a half years until 2026. As such there are six more installments left. A senior official of the ministry said the IMF usually reviews various aspects of compliance before disbursing each tranche. Accordingly, an IMF team will come next September to review the fulfillment of loan conditions before disbursing the second tranche. Read More: Following IMF advice BBS to calculate inflation on a new base year from March Usually before each budget announcement, an IMF mission comes to Dhaka to discuss budget assistance. Now that the loan programme is going on with them, besides the budget assistance, the issues of fulfilling the loan conditions will also come up for discussion, said the sources.

The spring meeting of the World Bank Group and the International Monetary Fund (IMF) begins today (April 10, 2023) in Washington DC, USA. This meeting is likely to announce an allocation of USD $50 billion from the organisations to face the global crisis. The seven-day meeting will continue till April 16 at the headquarters of the IMF and the World Bank Group in Washington. Read More: Bangladesh's GDP growth expected to pick up to 6.2% in FY2024: World Bank According to the Ministry of Finance, a delegation of six members is participating in the spring meeting led by the Governor of Bangladesh Bank, Abdur Rouf Talukder. Along with the governor, Bangladesh Bank Chief Economist Habibur Rahman, Finance Secretary Fatima Yasmin and Additional Secretary of Finance Department Rehana Parveen and two officials from the Economic Relations Department (ERD) are participating in the meeting. Apart from this, three more officials from the Bangladesh Embassy in the United States are expected to join the meeting along with the Bangladesh team. Read More: World Bank agrees to finance for development of metro rail-centric communication Generally, such meetings are led by the finance minister. However, Finance Minister AHM Mustafa Kamal is not joining the meetings this time. At this meeting of the World Bank Group, the International Bank for Reconstruction and Development (IBRD), a subsidiary of the organization, may announce an additional financing of $50 billion to deal with the global crisis. Being a member of IBRD, Bangladesh will also get the benefit of this financing, the finance ministry sources said. Read More: New World Bank leadership must put Climate Action as top priority: V20 The World Bank's spring meeting will be chaired by President of France Emmanuel Macron, and Prime Minister of Barbados Mia Amor Mottley. They will be joined by world leaders, academics, development experts and climate experts. Besides, finance ministers, central bank governors of 189 World Bank member countries will participate.

Mashiur Rahman, Economic Affairs Advisor to Prime Minister Sheikh Hasina, said on Thursday that the IMF loan is like a character certificate. “If we get this certificate, everyone will show interest in giving us loans,” he told a seminar on ‘South-South and Triangular Cooperation: Tapping New Opportunities.’ The discussion was jointly organised by Economic Relations Division (ERD) and UNDP in the capital, Dhaka. Read more: Government working on IMF’s conditions to get $4.5 billion loan Mashiur said that the IMF’s lending as budget support means that the economic management of a country is sound. “If this is the case, other countries or organisations will express interest in lending easily. The investment will also come along with it,” he said. UN Resident Coordinator Gwyn Lewis and UNDP Resident Representative Stefan Liller were present as special guests while ERD Secretary Sharifa Khan presided over the function. Read more: $4.5bn IMF loan: 1st instalment expected next Feb, says Mustafa Kamal Policy Exchange of Bangladesh CEO and Chairman M. Masrur Reaz and Research and Policy Integration for Development (PRI) Chairman Dr. MA Razzaque presented the main articles on the topic. Faizul Islam, Additional Secretary of ERD and UNDP’s Country Economist Nazneen Ahmed also spoke at the event.

A loan agreement of USD $200 million along with a project agreement for micro-enterprise financing and credit enhancement project was signed on Tuesday between the government and Asian Development Bank (ADB). Sharifa Khan, Secretary of the Economic Relations Division (ERD), and Edimon Ginting, Country Director, of Bangladesh Resident Mission signed at loan document on behalf of the respective sides. Dr. Nomita Halder, Managing Director, PKSF, and Edimon Ginting, Country Director, Bangladesh Resident Mission, signed the project agreement separately. Read more: $1 billion loan: ADB vice-president to reach Dhaka tonight for discussion The project will be executed by the Financial Institutions Division and implemented by Palli Karma-Sahayak Foundation (PKSF) to increase financing for micro-enterprises. Soft loans will be provided to small entrepreneurs (especially women), which in turn, will improve women's economic empowerment. The estimated completion date of the project is 31 December 2027. ADB's total loan to Bangladesh till now is more than $ 27.22 billion and the total grant is about $ 0.537 billion. Read more: ADB to invest $2 billion over next 3 years in Bangladesh’s education sector

Dhaka, April 18 (UNB)-The World Bank provides USD $ 250 million for the recovery and resilience of the economy from the adverse impact of Covid-19 pandemic. A loan agreement of $250 million signed on Monday between the Economic Relation Division (ERD) and World Bank under the ‘Bangladesh-First Recovery and Resilience Development Policy Credit (DPCI)’. ERD Secretary Fatima Yasmin and Mohammad Anis, acting country director of the World Bank in Bnagladesh signed the loan agreement on behalf of their respective sides. In response to the adverse effects of Covid-19, the government has provided stimulus incentives to economically affected industries, agriculture sector and export-oriented Industries and to ensure food security, the government extended the social safety net programs and employment creation. Also read: World Bank projects developing East Asia Pacific to grow 5 pct in 2022 The WB has agreed to provide $250 million as Budget Support, titled `Bangladesh-First Recovery and Resilience Development Policy Credit (DPC1)', which will play a key role in sustaining the post Covid-19 economic recovery and development momentum. The DPC series will provide $500 million in two consecutive Fiscal Years 2021-22 and 2022-23. The remaining objectives of the DPC are to assist Bangladesh in its efforts to implement budget stimulus for the subsequent recovery of Covid-19 and to enhance resilience to future shocks. The interest rate of the above-mentioned loan is 1.25 percent, and the service charge at the rate of 0.75 percent, and this loan has to be repaid in 30 years with a grace period of 5 years. Also read: World Bank okays $358 million fund to improve road safety in Bangladesh

The National Board of Revenue (NBR) will honour 9 firms on the National VAT Day for paying highest amount  of Value Added Tax (VAT). The VAT department of the National Board of Revenue (NBR) on Wednesday released a list of awardees. Earlier the Economic Relations Division (ERD) published a gazette notification in this regard. Read:NBR to organize month-long tax support service from Nov 1 December 10 is celebrated as the National VAT Day every year. The NBR will honour the highest tax payers of the fiscal year 2019-20 on this day. Nine firms under three categories- production, business and service- will receive the awards at a ceremony in Dhaka. The list of awardees includes Aristopharma Limited, Square Toiletries Limited and Maya Bidi Factory under the production category, SM Motors, AMCO Bajaj International and Union Motors Limited under business category and IDTCO Bangladesh Co. Ltd. Gray Advertising Ltd. and Robert Boss (Bangladesh) Ltd under service category. The VAT department of the National Board of Revenue has been regularly honoring the top VAT payers for several years. Read: NBR directs big push to reach the revenue target for current fiscal Business establishments which have Electronic Business Identification Number (EBIN), issue regular VAT receipts to the consumers and regularly deposit the collected VAT money in the government treasury are considered eligible for the award. NBR will also honour 102 companies in the three categories as the top VAT payers at the district level.

Bangladesh will receive $250 million from the Asian Infrastructure Investment Bank (AIIB) to implement a government programme for the country’s sustainable economic recovery from Covid-19 fallouts. ERD Secretary Fatima Yasmin and AIIB’s vice president, investment operations (Region-1) DJ Pandian signed the loan agreement virtually on behalf of their respective sides. The finance division has taken the programme to reform policies for the recovery of Bangladesh economy from the pandemic shocks. Read Next 2 weeks crucial to ensure TRIPS waiver for pharma beyond LDC graduation The Asian Development Bank (ADB). AIIB, the lead financier of the programme, is contributing $250 million as a co-financier. Under the programme, steps will be taken to reduce and rationalize expenditure by reforming and strengthening the public finance management (PFM) system and expanding financial resources, said Fatima. Also read: World Bank prediction on Bangladesh economy inconsistent: Finance Minister The programme also aims to create financing opportunities for industries and entrepreneurs such as small, medium and cottage industries whose sources of funding are insufficient, she said. The loan will be received in AIIB’s standard term and conditions. The repayment period of the loan is 20 years, including a 3-year grace period.

The government has taken a very strong stance against the idea floated by the World Bank that apparently suggests the integration of Rohingyas into Bangladesh as Bangladesh’s priority remains repatriation of Rohingyas to their homeland. “We took a very strong stance. We didn’t like it and we opposed it strongly. We conveyed it,” Foreign Minister Dr AK Abdul Momen told UNB. The World Bank came up with a programme as part of its Refugee Policy Review Framework globally for refugee host countries through the Economic Relations Division (ERD). “Rohingyas are not refugees here. They’re taking shelter temporarily,” Dr Momen said, adding that Bangladesh wants the repatriation of Rohingyas to their place of origin in Myanmar. Asked about the WB’s proposed programme, the Foreign Minister said the WB is saying effective steps to be taken to identify, prevent and mitigate social tensions and risk of violence among the displaced people and host communities, building good relations among themselves,  and to employ them in local works. Read: Poor host communities fume as Rohingyas start grabbing local labour market He said they (WB) are saying Rohingyas should have the right to work and free mobility; and birth, marriage, divorce and death certificates should be issued for the Rohingyas like Bangladesh citizens. “Naturally, we don’t accept those ideas. They (WB) are willing to give money for these if we do integrate them.” As per the WB ideas shared with the ERD, the Rohingyas should have access to local labour market, including business opportunities, the same way Bangladesh nationals have with the same payment facilities.