Bangladesh will become the 28th largest economy in the world by 2030 and 25th largest economy by 2035, according to the UK’s Centre for Economics and Business Research (CEBR). As per the report of CEBR, the size of the economy will nearly treble to US$855 billion in 2035 from the $301 billion in 2020 in the US dollar constant prices. In current terms, Bangladesh will become more than a trillion-dollar economy before the period, showed the latest edition of the World Economic League Table of the think-tank. In its annual league table on the growth prospects of 193 countries, the consultancy group said that despite the Covid-19 pandemic, Bangladesh was able to escape a contraction in 2020. The rate of gross domestic product (GDP) growth in Bangladesh is anticipated to have dipped to 3.8 percent in 2020. This compares to 8.2 per cent GDP growth recorded in 2019. Government debt as a share of GDP rose to 39.6 per cent in 2020, which remains a low level. The government operated a fiscal deficit of 6.8 per cent in 2020, facilitated in part by the low debt to GDP ratio. “This will have bolstered the economy in the past months,” the report said. Between 2021 and 2025, CEBR forecasts that the annual rate of GDP growth will accelerate to an average of 6.8 per cent. However, over the remainder of the forecast horizon, economic growth is expected to decline to an average of 6.5 per cent per year. Bangladesh has also had a purchasing power parity-adjusted GDP per capita of $5,139 in 2020, making it a lower-middle-income country. As of the middle of December, the country had recorded 7,052 COVID-19 related deaths, equating to four deaths per 1,00,000 people. While the harm to public health inflicted by the pandemic has been relatively limited, the effect of the outbreak on the on global demand and international supply chains means that the economic damage has been considerable. Bangladesh came 168th in the World Bank’s 2020 Ease of Doing Business rankings, suggesting that the regulatory environment is not conducive to a thriving private sector, the think-tank said. The CEBR said the economy enjoyed a strong rate of GDP growth in the years leading up to the Covid-19 pandemic, despite a modest rate of population growth, which averaged just 1 per cent per year over the past five years. Source: BSS AH

The Asian Development Bank (ADB) has launched a US$9 billion vaccine initiative—the Asia Pacific Vaccine Access Facility (APVAX)—offering rapid and equitable support to its developing members as they procure and deliver effective and safe coronavirus disease (COVID-19) vaccines. “As ADB’s developing members prepare to vaccinate their people as soon as possible, they need financing to procure vaccines as well as appropriate plans and knowledge to be able to safely, equitably, and efficiently manage the vaccination process,” said ADB President Masatsugu Asakawa, said a press release on Friday. “APVAX will play a critical role in helping our developing members meet these challenges, overcome the pandemic, and focus on economic recovery,” he added More than 14.3 million positive cases have been identified in Asia and the Pacific, causing more than 200,000 deaths. As the pandemic persists, economic growth in developing Asia is projected to contract by 0.4 percent in 2020—the first regional gross domestic product contraction since the early 1960s. Promoting safe, equitable, and effective access to vaccines is a top priority for ADB’s COVID-19 response efforts. Vaccination programs can break the chain of virus transmission, save lives, and mitigate the negative economic impacts of the pandemic by restoring confidence in people’s ability to work, travel, and socialize safely. The APVAX provides a comprehensive framework and resource envelope for supporting developing Asia’s vaccine access, using two complementary components. The Rapid Response Component will provide timely support for critical vaccine diagnostics, procurement of vaccines, and transporting vaccines from the place of purchase to ADB’s developing members. The Project Investment Component will support investments in systems for successful distribution, delivery, and administration of vaccines along with associated investments in building capacity, community outreach, and surveillance. This may include such areas as cold-chain storage and transportation, vehicles, distribution infrastructure, processing facilities, and other physical investments. The component may also be used to develop or expand vaccine manufacturing capacity in developing members. ADB financing for vaccines will be provided in close coordination with other development partners including the World Bank Group, World Health Organization (WHO), COVID-19 Vaccines Global Access Facility (COVAX), GAVI, and bilateral and multilateral partners. APVAX promotes safe and effective vaccines to be accessed in a fair manner. For a vaccine to be eligible for financing, it must meet one of three criteria. It must be procured via COVAX, prequalified by WHO, or authorized by a Stringent Regulatory Authority. Additional access criteria, such as a vaccination needs assessment, a vaccine allocation plan by the developing member, and a mechanism for effective coordination among development partners also help ensure that vaccine support under APVAX can be fairly and effectively implemented. ADB is also making available a $500 million ‘Vaccine Import Facility’ to support the efforts of its developing members to secure safe and effective vaccines, as well as the goods that support distribution and inoculation. The facility is part of ADB’s Trade and Supply Chain Finance Program. Source: BSS AH

The timeframe for income tax return submission has been extended for one more month. The decision was taken in the board meeting of National Board of Revenue (NBR) on Monday.NBR Chairman Abu Hena Mohammad Rahmatul Munim confirmed the information on Monday afternoon. The NBR Chairman said, the timeframe for income tax return submission has been extended up to December 31 due to request from all including personal taxpayers, businessmen, income tax lawyers and public representatives following the Covid situation. Although yesterday the NBR Chairman announced at a press conference on the occasion of national income tax day-2020 that timeframe would not be extended. He noted that 13 lakh 20 thousand returns were submitted till November 26 and the amount of paid tax is 2 thousand 387 crore taka. He said, though our ability has increased but the segment of income tax has not increased at the expected level. At that time he said, there is no scope to extend the timeframe for submitting the income tax return. Those who did not submit have to submit it within Monday. Otherwise they have to pay the fines. The NBR Chairman said, those who would fail to submit income tax return in the stipulated time they can apply to the concerned tax office. In that case fine will be waived if they can show logical reason. If the commissioner observes that the reason is not logical then he has to pay the fine. Mentionable, at present 46 lakh citizens have the Tax Identification Number (TIN). But nearly half of them do not submit return regularly. AH    

One of the eminent industrialists of the country Alhaj Morshed Alam, MP has been elected Chairman of National Life Insurance Company Limited. He was elected the Chairman unanimously at the 259th board meeting of the company on Sunday. Alhaj Morshed Alam is the founder Chairman of Bengal Group of Industries and also the Director and Chairman of Mercantile Bank Limited. He was elected as a Member of Parliament from Noakhali-2 (Senbag-Sonaimuri) constituency in the 10th and 11th parliament elections. Besides, he is the Chairman of private television channel Rtv and also performing his responsibility as the Trustee of Peoples University of Bangladesh. He is also associated with bank, insurance, financial service, media, holdings, construction, hotel and resorts and export oriented businesses. Alhaj Morshed Alam devotes his works with social service, education, health and social development. He established Morshed Alam High School at Nateshwar in Noakhali. Besides, he is one of the benefactors of Motijheel Ideal School and College, Dhaka; Bajra High School of Noakhali and Kazi Nagar Madrasa. AH    

Expatriate Bangladeshis sent around US$ 1.22 billion remittances during the first fifteen days of November in the fiscal 2020-21. According to a press release of the Finance Ministry, the country received $0.91 billion in the first fifteen days of November in the fiscal 2019-20. As per the press release, the country received $10.04 billion up to November 15 this fiscal which is around 42 percent higher than the amount of corresponding period of the preceding year. The country received $7.07 billion remittances during the same period of the 2019-20. Meanwhile, on the recent remittance surge, Finance Minister AHM Mustafa Kamal thanked the expatriate Bangladeshis on behalf of the countrymen for their role to keep the economy of the country dynamic. “During this time, our remittance fighters are playing a vital role to keep the economy afloat by sending money. In the budget of 2019-20 financial year, the government announced 2 percent cash incentive to encourage non-resident Bangladeshis (NRBs) to send money to the legal channel,” he said. He said when remittances started to increase, many started saying that these are not right, will not be, and are not sustainable. During the first three months of the current financial year, he said when remittances were being received at an extraordinary and incredible pace, many of them started different comments that workers are returning to the country after wrapping up their work or business. In line with those people, he said, various international organizations also started saying that this flow is not right, it will not be sustainable. But, he said, the flow of remittance growth since the announcement of the incentives to date has proved their predictions wrong and proved once again that we were right. Source: BSS AH