The Spring Meeting of the World Bank (WB)-International Monetary Fund (IMF), 2022 praised Bangladesh for successful implementation of its policy to face Covid-19 pandemic and economic recovery from its impact. The meeting was held on April 17-24 in Washington DC, USA and an 11 members delegation led by Bangladesh Bank (BB) Governor Fazle Kabir attended the meeting, said a press release. The delegation includes Alternative Executive Director of the World Bank Mohammad Shafiul Alam, Senior Secretary of the Finance Division Abdur Rauf Talukder, Bangladesh Ambassador to the United States M Shahidul Islam and Secretary of the Economic Relations Division Fatima Yasin. The Bangladesh delegation met the Vice-President of the World Bank, IFC and MIGA, and the IMF delegation. The team also took part in different bilateral seminars. They also met delegations of the Fiscal Affairs Department (FAD), Monetary and Capital Markets Department (MCM) and Asia and Pacific Department (APD). At the meeting, everyone praised Bangladesh for its policy to face the Covid-19 pandemic and economic recovery. The meeting discussed the World Bank's pipeline projects. It was requested to come forward to provide guarantee for foreign investment in the economic zones to be established in Bangladesh. Source: BSS AH

Country’s businessmen today (Apr 16) stressed highly the need for ensuring export diversification to face the challenges of the post LDC graduation. In order to ensure export diversification and enhancing capacity, they demanded of the government to give equal treatment to all the export-oriented sectors instead of concentrating on some few sectors. The businessmen came up with the opinion at a seminar titled “Bangladesh’s export challenges in post LDC graduation: the role of the private sector” organized by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) held at its office in city’s Motijheel area. Prime Minister’s Principal Secretary Dr Ahmad Kaikaus joined the Programme as the chief guest while BIDA executive chairman Md Sirazul Islam, Commerce Ministry Senior Secretary Tapan Kanti Ghosh, Industries Secretary Zakia Sultana and Planning Commission member Sharifa Khan spoke as special guests. FBCCI President Md Jashim Uddin gave the welcome address while former member of Bangladesh Trade and Tariff Commission Mostafa Abid Khan made the key-note presentation. Former president of MCCI Syed Nasim Monzur, PWC Bangladesh managing partner Mamun Rashid, FBCCI adviser Monzur Ahmed, Bangladesh Trade and Tariff Commission former chairman Dr Mojibur Rahman and CPD research director Dr Khandaker Golam Moazzem spoke as panel discussants. Listing a set of export supporting proposals, the FBCCI President said that following the LDC graduation, the export oriented sectors would face most of the challenges. “For this, all export sectors should get equal opportunities to boost country’s exports,” he said urging the government for allowing establishment of industries through only permanent registration without the necessity for renewal, land, environment, fire safety and tax related certificates. He also called upon the government for taking necessary steps to ensure uninterrupted supply of energy alongside building necessary Human Resources. Speaking on the occasion, Dr Ahmad Kaikaus said that Prime Minister Sheikh Hasina herself makes branding of country’s businesses as she usually takes businessmen as her entourage members while touring abroad. Mentioning that Bangladesh has still four years more to make LDC graduation which is also not a short time, he said that in the pace Bangladesh is moving ahead, it would change the projections of various organizations. Kaikaus also said that there was no corruption in the mega projects and in procurement of vaccines. BIDA Executive Chairman Md Sirazul Islam said that although the World Bank has stopped publishing the ease of doing business index, but the BIDA has been working relentlessly to improve such improvement. He informed that since launching of the once stop service in 2019, BIDA has so far delivered more than 50,000 services. Tapan Kanti Ghosh said that there is no alternative to striking free trade agreements for gaining export and trade competitiveness in the long run for which the government has been giving its relentless efforts. The speakers at the seminar underscored the need for building skilled Human Resources, maintaining the supply chain, reaching 5G and broadband services in every nook and corner, ensuring industry-academia linkage and signing more FTAs. Source: BSS AH

Foreign exchange reserves have crossed the US$44 billion-mark again due to the higher growth of inward remittance. The forex reserve fell to $43.89 billion on 6 March 2022 after paying import bills of $2.16 billion to Asian Clearing Union (ACU). It was the lowest forex reserves for Bangladesh in past one year. The export earnings and remittance inflows of $15.29 billion in nine months of the current (July-March) fiscal year (FY), pushed the foreign currency reserves to 44.30 billion on Sunday in contrast to a month ago. Remittance inflow rose to an eight-month high in March which was nearly 25 percent higher than the previous month of the current fiscal 2021-22. According to the Bangladesh Bank (BB) latest data, expatriate Bangladeshis sent US$1,859.97 million remittance in March of the fiscal 2021-22 which is the highest since July when $1,871.49 million flew into the country in remittances. Source: BSS AH 

South Korean Ambassador in Dhaka Lee Jang-Keun today said his country is keen to develop Bangladesh-Korea's success in other sectors apart from Ready-made garment (RMG) sector.      The envoy said, "Seoul wants to take the bilateral relations to a new level in 2022, marking the 50th anniversary of Bangladesh-South Korea diplomatic relations and efforts are being made to increase Korean investment in other sectors besides readymade garments."      The envoy made the remarks in a courtesy call on Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Md Jashim Uddin at FBCCI head office here today, said a press release.      At present, South Korea is the 5th largest country in terms of foreign direct investment in Bangladesh, he added.      During the meeting, the FBCCI president called upon the Korea to invest in Bangladesh's infrastructure sector and man-made fiber sector.      The President said Bangladesh is enjoying a golden time for investment due to its huge domestic market, growing exports, easy availability of power and infrastructure, government policy support and a large working population.      The countries that take advantage of this opportunity will be benefited, he added.      He also said that the apex trade body will discuss with the Investment Development Authority (BIDA) on organizing road shows or investment summit in Korea to highlight the investment opportunities in Bangladesh.      The meeting decides to hold a business dialogue this year in a joint venture between Korea-Bangladesh Chamber of Commerce and Industry (KBCCI) and FBCCI.     FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, Vice President MA Momen, Md. Amin Helaly, Md. Habib Ullah Dawn, Director Mohammad Anwar Sadat Sarkar, Md. Rezaul Kariem Rejnu, Dr. Nadia Binte Amin, Md. Nizam Uddin, Naz Farhana Ahmed, President of KBCCCI and Chairman and MD of Meghna Group of Industries Mostafa Kamal, Advisor Sahab Uddin Khan, Director General of Korea Trade-Investment Promotional Agency Kim Dong Hyon, First Secretary of the embassy of the Republic of Korea Lee Jungyoul and FBCCI Secretary General Mohammad Mahfuzul Hoque, among others, were present at the meeting. Source: BSS AH

Bangladesh Bank Governor Fazle Kabir today (Saturday) said that due to the COVID-19 pandemic, the country's economy fell into a challenge, but with the power of resilient private sector of Bangladesh, the economy is performing relatively well.     "Our GDP and total size of economy have been increased which is a good sign and reflects that we are on board," he said.     Kabir said this at a webinar on "Bi-annual Economic State and Future outlook of Bangladesh Economy: Private Sector Perspective" as the chief guest held today.     FBCCI President Md Jashim Uddin joined as special guest while DCCI President Rizwan Rahman presented the keynote paper, said a press release.    Regarding financial sector, the central bank Governor said that the government has declared stimulus package at the right time and there is no liquidity shortages in banks right at this moment.      He also informed that Bangladesh Bank is closely monitoring the inflationary pressure on the economy. In terms of export diversification, Kabir also reiterated that the light engineering, jute, leather, ICT and pharmaceutical sectors are doing better beside the RMG sector.      "We need to nurture these sectors for better diversification. Considering the export competitiveness, the EDF facility has been extended." He added.     He also hoped that the stable economy would help attract more FDI.      Moreover few of the mega projects will be accomplished soon and that will help expedite FDI inflow, Kabir mentioned.      Later, he stressed the need for enhancing soft and hard skills development of manpower considering the challenge of LDC up-gradation.    FBCCI President Md Jashim Uddin said that prices of commodities in the international market have increased.      In that case, cost of import and duty also has increased. But, the economy is yet to be recovered, he said.      He said due to disrupted global supply chain system, the international market becomes a little bit volatile.      For controlling inflation, Jashim recommended to redesign duty structure for the time being. He also urged for sectoral skill development and innovation targeting the LDC graduation.      "Moreover, we need to be competitive on negotiation skills," he added. He termed agro based sector as a potential sector and suggested to incentivize the producers.     For export diversification, value added jute products can be a mainstream product beside the RMG in the long run, he said.     He also said that energy price hike will affect the inflation at this moment as the country is still in the pandemic situation.    The FBCCI President also said that CMSMEs are the lifeline of economy and NPL by CMSMEs are relatively low than the large and medium.   He said the next budget should get priority on private sector, issues related to LDC graduation, revenue collection, ADP expenditure, increasing tax net.     DCCI President Rizwan Rahman said the world is still struggling with the Covid-19, but having these challenges, Bangladesh's economic progress is quite satisfactory during the first half of FY2021-22 despite there are many challenges like inflation, lack of export diversification, policy support, skill shortages, poor logistic infrastructure, supply chain constraints.   Rizwan in his presentation outlined the bi-annual economic state of the country started from July 2021 up to December of the same year.      He said the country still could not come out of the shackle of Covid- 19. Inflation rate rose to 6.05 percent in December in view of the rise in fuel cost in the international market.      He suggested to give loan facilities to the importers of daily essentials and to cut duty on commodities import to tackle the inflation. He also suggested to compensate the agro-businesses with lower transportation and fuel cost.    In terms of revenue growth and effective development expenditure, the DCCI President suggested for full automation of tax, VAT, customs assessment, return and credit.      He also urged for widening the tax net. He said continuation of SUKUK bond and other securitized assets in the local market and sovereign bonds for international borrowing would reduce dependence on banking sector led borrowing.    Rizwan also underscored the need for developing an inclusive and long-term logistic strategy including a National Logistic Policy.     Naser Ezaz Bijoy, President, FICCI, Md Saiful Islam, President, MCCI, Dr Zaidi Sattar, Chairman, PRI, also spoke at the webinar.     DCCI Senior Vice President Arman Haque gave the introductory remarks.   Source: BSS AH

Although coronavirus hit every country in the world, Bangladesh sent 6,17,209 workers overseas and received a record $ 22,070.87 million as remittance in 2021. “The trend of overseas employment is satisfactory during the COVID-19 pandemic,” an official of Expatriates’ Welfare and Overseas Employment Ministry told BSS. He said the overall manpower export from Bangladesh is expected to increase gradually although COVID-19 pandemic hit the whole world. Expatriates income declined for six consecutive months due to the second outbreak of the COVID-19 pandemic. Even then, a record amount of remittance came to Bangladesh in the year just ended. In 2021, the expatriates sent a record $22,070.87 million to the country. Never before, so much remittance came to the country in a single year.  “We’ve been working to increase number of overseas migrant workers as well as ensure the rights and protection of them following the directives of Prime Minister Sheikh Hasina,” the official said. After assuming office the Awami League government sent 74 lakh 68 thousand 132 workers abroad with jobs from 2009 to 2021. About overseas labour market during the COVID-19 pandemic, the official said, the government collected information about overseas labour market through diplomatic missions. Besides, experts advised the government to invest in developing need-based skilled manpower for the post COVID-19 world as they believe the demand for jobs of nurses, doctors and other healthcare workers would increase in many countries. According to data in the ministry, the government has already set up many training centres in different districts along with skill development programmes to create skilful jobseekers. The government encourages documented overseas employment, as an important component of earning foreign currency. Bangladesh has become the 8th largest remittance-receiving country and the 6th largest migrant-sending country in the world, according to the World Migration Report 2022. The government provided various trainings including diploma in ship building engineering, refrigeration and air-conditioning, general mechanics, electrical machine maintenance, auto CAD 2D and 3D, welding (6G), catering, mason, Korean, Arabic, canton, Japanese language and others. Earlier, the government declared the overseas employment sector as a “thrust sector” with maximum stress on further expanding job markets for the Bangladeshi job seekers abroad. Source: BSS AH

The government has decided to increase the cash incentive on sending remittance to 2.5 percent from the existing 2 percent in order to encourage sending remittances through legal channels.    The decision, which came into effect from today (January 1, 2022), is expected to improve the overall living standards of common people, boosting the foreign currency reserves, checking money laundering, generating employment, said a Finance Ministry press release.    This increase of cash incentives against remittance is a gift from Prime Minister Sheikh Hasina to the expatriate Bangladeshi workers marking the New Year.    The release said the government first decided to provide 2 percent cash incentives against sending remittance in the FY20 which resulted in a healthy inward remittance amount of $18.20 billion which was 13 percent higher than the previous fiscal year (FY19).    In continuation of this, the inward remittance amount was $24.80 billion in the last fiscal year (FY21) which was also 36 percent higher than the previous fiscal year (FY20). Source: BSS AH