The government has taken initiatives to turn Dhaka-Joydevpur-Mymensingh road into 10-lane. If it is constructed then it will be the first international quality expressway in the country. The cabinet has approved a proposal in this regard which will cost 3,353 crore taka. Korea Overseas and Development Corporation will implement the construction work of the expressway under Public Private Partnership (PPP). The proposal was approved in a virtual meeting of the finance committee presided over by Finance Minister AHM Mustafa Kamal on Wednesday. Later the minister informed the newsmen about the matter. The Finance Minister said, approval of ‘Improvement Dhaka-Joydevpur-Mymensingh road into expressway with service both sides’ has been given. A South Korean company will construct the road. He said, the existing road comprises four lanes and it will be widened. We have found good company. They with help of the government will perform the road widen activities. AHM Mustafa Kamal said, the Korean company will bear all the expenses. The primary cost is fixed at 3,353 crore taka and the government will not spend any money for that. Because, the existing four lane road was constructed by the government. The extended road will be attached to the existing road. But the government will bear the cost of 280 crore taka for rehabilitation and 100 crore taka for utility services. The Koprean company will bear the rest 3,353 crore taka. According to the Roads and Highways Directorate sources, if the 87.18 kilometers four-lane road between Joydevpur and Mymensingh is turned into 10-lane then it would take one and half hours to reach Mymensingh from Dhaka. There will be emergency lane for running security vehicles, ambulance and VIP vehicles. Underpass and U-turns will be constructed after 2 to 3 kilometers distances. There will also be some interchange link roads. AH

The World Bank (WB) has approved $200 million to help Bangladesh improve access to safe water and sanitation services in rural areas. The Bangladesh Rural Water, Sanitation and Hygiene for Human Capital Development Project will help about 600,000 rural people avail safe and clean water through large and small piped water schemes, said a WB press release. It will also provide access to improved sanitation services to over 3.6 million rural people. Through providing better access to water, sanitation, and hygiene (WASH) facilities at homes and in public places and motivating people to adopt proper hand washing practices, the project will help prevent diseases and protect from infectious disease outbreaks, including the COVID-19 pandemic. Further, it will address urgent WASH needs during the COVID-19 pandemic in a quick and timely way. “Bangladesh has made remarkable progress in providing access to basic water supply to all and end open-defecation. However the quality of water and sanitation and the link between safe water and sanitation and human capital development remains a challenge,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan. “This project will provide clean water and sanitation services that will reduce diarrheal diseases, improve nutrition, health, and reduce stunting among children under five, and especially benefit those in vulnerable groups. This will help the country reduce poverty and accelerate economic growth,” she said. In rural areas, the release said only about 3 percent of households had piped water connections in 2017. In addition to investing in large and small piped schemes, the project will facilitate loans for households to improve their water and sanitation facilities and for local WASH entrepreneurs to expand their business. Furthermore, to ensure the quality and sustainability of the piped water schemes and fecal sludge management, the project will train the local entrepreneurs. In crowded public spaces—such as markets, bus stations and community clinics—the project will set up about 2,514 handwashing stations with overhead tanks for running water, drainage, and sanitation facilities, which will be equipped with soaps. “Bangladesh is among the most vulnerable countries to climate change impacts. Extreme weather events and climate change affect the WASH sector by reducing drinking water quality and availability,” said Rokeya Ahmed, World Bank Senior Water Specialist and Team Leader for the project. “The project will build climate-resilient water and sanitation facilities and improve fecal sludge management to reduce contamination of surface water and groundwater,” added the World Bank official. In Bangladesh, the release said about one in every four women use appropriate menstrual materials; the low usage rate leads to infection and often prevents girls from attending school. The project will facilitate micro-finance loans to about 150 female entrepreneurs to sell sanitary napkins at the doorsteps. It will also promote women’s representation and leadership in water management committees at the community level. The project will cover 78 Upazilas in Mymensingh, Rangpur, Chittagong, and Sylhet Divisions. The project will impart a behavioral change campaign for better WASH practices and utilize community health workers to deliver regular training on handwashing, baby WASH, and menstrual hygiene. The credit is from the World Bank’s International Development Association (IDA), which provides concessional financing, has a 30-year term, including a five-year grace period. Bangladesh currently has the largest ongoing IDA program totaling over $13.5 billion. Source: BSS AH

Bangladesh might be one of only two ASEAN and South Asian economies to register positive growth in 2020 when the world is almost certainly bound to a devastating recession caused by the coronavirus pandemic. Chief Economist, ASEAN and South Asia, Standard Chartered Edward Lee said while speaking at a media session held following the 2020 Bangladesh session of the Bank’s Global Research Briefing series. Over 300 of the Bank’s clients joined via videoconferencing during the event to participate in a unique digital experience, according to a press release. Edward Lee mentioned that lower growth will partly be driven by slowdown in key trading partners, with the Eurozone, US and Middle East likely to contract sharply in FY20 and FY21. While uncertainties remain, the worst is most likely over, said Standard Chartered’s leading economists recently, “We remain cautiously positive on Bangladesh’s growth prospects given economic resilience as well as fiscal and monetary room available to support growth. The balance of payments has improved in the last six months while debt levels are low. Key risks could emerge from continued disruption in economic activities from the spread of covid-19 infections both locally as well as key international markets which could severely impact exports and remittances,” Saurav Anand, the Bank’s South Asia economist, said during his presentation. Prof Shibli Rubayat-Ul-Islam, Chairman of Bangladesh Securities and Exchange Commission, joined the event as the chief guest. He said the people of Bangladesh, the government and the business community have always shown resilience to overcome various natural calamities and economic downturns through hard work. "We’re very hopeful that this time we’ll also demonstrate even stronger resilience and it’s already being reflected. We expect Bangladesh to have V-shaped recovery post COVID reaching back to more than 8 percent GDP growth trajectory within 2021,” he said. The Standard Chartered Bangladesh CEO said Bangladesh entered these turbulent times on a much stronger footing compared to many of its peers, due to low external debt, low overall public debt and comfortable debt service capability in view of its healthy foreign exchange reserve. “By working together across the board, we can leverage our solid economic fundamentals and the innate resilience of our communities to quickly regain lost ground, and achieve all our ambitions and aspirations for our nation,” Naser said. Source: UNB AH

Bangladesh’s GDP is expected to grow by 4.5 percent in FY2020 and 7.5 percent in FY2021, the Asian Development Bank (ADB) said in the update report of Asian Development Outlook (ADO) 2020 Supplement on Thursday.   The growth forecast for FY2020 reflects sharp decrease in economic activities in the last quarter due to COVID-19 pandemic and its outbreak in Bangladesh, according to a press release.   Bangladesh’s economy is expected to recover in fiscal year 2021 after coronavirus induced slowdown in FY2020, according to the latest ADB report of ADO Supplement.   During FY2021, GDP growth rate is expected to pick up to 7.5 percent driven by gradual recovery in the first two quarters, followed by quick recovery in the following quarters.   These forecasts rest on the assumption that it would take three months, from when the outbreak intensifies in the country, for economies to get their domestic outbreak under control and to start normalising economic activities, it said.   These forecasts also consider the impacts of the government’s containment actions, and fiscal and monetary stimulus measures. “After a robust performance in the first nine months of FY 2020, Bangladesh economy would slow down in near term due to COVID-19 pandemic but is likely to recover in FY2021,” said Country Director Manmohan Parkash.   “Managing the pandemic is a priority and the FY2021 forecast depends on how the recovery shapes up in the coming months,” he said.   Appreciating the resilience of Bangladeshi people, Parkash said, the global economic recovery, proactive initiatives to attract investments, creating local employment opportunities, and providing easier access to finance for farmers, entrepreneurs and small businesses could help jumpstart the economy.   “ADB has so far provided $600 million in loans and $1.4 million in grants for managing health emergency and mitigating the initial socio-economic impacts of the pandemic,” he added.   “In FY2021, ADB will continue its strong support to help Bangladesh economy recover and rebound from the impacts of COVID-19,” said Parkash.   5.5pc inflation   The government’s strict containment measures resulted in sharp reduction in consumption, production, and investment in the last quarter of FY2020.   Sweeping global spread of COVID-19 and containment measures in major export markets sharply reduced export earnings. Economic activities are expected to slowly return towards a normal path after restrictions are gradually lifted by the government since June 2020.   In FY2021, gradual recovery is expected to start from the first quarter, aided by the government’s stimulus measures in the absence of the recurrence of COVID-19 outbreak.   Afterward, strong manufacturing base and recovery in global economy will enable Bangladesh to experience a quick recovery. However, risks to the outlook are tilted downward, including a prolonged or recurrence of COVID-19 outbreak in Bangladesh and export destinations.   Inflation will stay at moderate levels in FY2020 and FY2021. Inflation is expected to slightly edge up to average 5.6 percent in FY2020 on higher food prices as well as non-food prices on account of higher domestic natural gas prices.   In FY2021, it will ease to 5.5 percent on better supply conditions. The inflation forecasts rest on the assumption that potential upward pressure in prices from the COVID-19 pandemic related stimulus measures are expected to be offset by fall in demand from the consumers. Source: UNB AH

Expatriate Bangladeshis sent around US$16.56 billion remittance till June 3 of the current fiscal 2019-20 which is all time high of any fiscal. “Bangladesh has achieved the highest remittance till June 3 of this fiscal. It is the highest record of any financial year. During this time, Bangladesh has achieved $16.56 billion, which is the result of the government’s two percent incentive program. As of June 30, 2018-19, it was $16.42 billion. With one month left in this fiscal year, the sector has achieved this record of $16.56 billion,” according to a Finance Ministry press release issued Friday. The country’s foreign exchange reserves also touched a new record of $34.23 billion on June 3 amid the coronavirus crisis. Earlier, the previous highest reserves amounting $33.68 billion were recorded on September 5 in 2017. Source: BSS AH

The Asian Development Bank (ADB) on Wednesday projected 8 percent GDP growth in Bangladesh in the current fiscal year indicating that the country will continue as the fastest growing economy in Asia and the Pacific. The multilateral lending agency attributed the growth to continued buoyant exports, robust private consumption with higher remittances, accommodative monetary policy, ongoing reform to improve business climate for private investment, and public infrastructure investment. On the supply side, sustained strong growth in industry and agriculture are expected to be the main drivers of growth in FY2020, said the ADB. “Bangladesh economy is in a good shape and is likely to continue to grow. At 8 percent growth in FY2020, ADB’s outlook indicates that Bangladesh is likely to continue as the fastest growing economy in Asia and the Pacific,” said ADB Country Director Manmohan Parkash adding that favorable trade prospects are expected to continue despite a weaker global growth. Reports UNB. Launching the Asian Development Outlook (ADO) 2019 Update at its office in the city, he said exports and remittances are likely to be further strengthened. “Strong public investment due to continued policy environment and expediting implementation of large infrastructure projects are also envisaged. We see such momentum to continue in FY2020,” said the ADB Country Director. Parkash said such strong performance and prospects are commendable, especially under the current situation and near term forecast of moderating growth in developing Asia. AH

Finance Minister AHM Mustafa Kamal said that Bangladesh has topped in attaining GDP growth compared to other countries of the world over the last 10 years since 2009 under the current price method. The Finance Minister revealed the information at the Cabinet meeting on Monday quoting “The Spectator Index” published on August 29 highlighting the performance of top 26 GDP growth gaining countries of the world, said a Finance Ministry press release. Reports BSS. The publication showed that the percentage of growth of Bangladesh is 188 followed by China’s 177, India’s 117, Indonesia’s 90, Malaysia’s 78, Australia’s 41 and Brazil’s 17 percent. Congratulating the Prime Minister for this outstanding achievement on behalf of the whole nation at the Cabinet meeting, Kamal said Bangladesh is moving ahead and would continue to move ahead. He also hoped that Bangladesh would set a strong example in the global economic arena soon if the current trend of advancement continues under the dynamic leadership of Prime Minister Sheikh Hasina. The Finance Minister also noted that it would be possible to build “Sonar Bangla” as dreamt by Father of the Nation Bangabandhu Sheikh Mujibur Rahman through attaining much stronger results in the economic front under the dynamic guidance of the Prime Minister. AH