Economy
“Turkiye-Bangladesh trade and investment potential to see high prospect in future”
The trade and investment potential between Bangladesh and Turkiye will see high prospects in the future, said Dhaka Chamber of Commerce and Industries (DCCI) President Rizwan Rahman.
An 86-member business delegation of DCCI is visiting Istanbul, Turkiye to explore new trade and investment opportunities. During this visit, the delegation attended the Bangladesh-Turkiye business forum arranged by the Istanbul Chamber of Commerce on 28 September 2022, said a press release.
In the welcome address Burhan Polat, executive board member of the Istanbul Chamber of Commerce said that Bangladesh and Turkiye maintain a friendly bilateral trade relationship for a long.
He said Bangladesh is one of the important countries in the South Asian region in terms of trade and investment and Bangladesh is maintaining steady economic growth for the last few decades. Bangladesh should increase its export basket and volume.
The Turkish market is one of the potential places for Bangladeshi entrepreneurs. Bangladesh in recent times is doing better in the leather, pharmaceutical, RMG and light engineering sector. To boost bilateral trade he urged to sign a trade agreement.
Moreover, he stressed enhancing liaison between the private sector of these two countries. Istanbul Chamber is one of the largest trade organizations in the world and has more than 6 lakh members. Istanbul Chamber will be happy to extend its full out cooperation to the Bangladeshi investors to explore new investment opportunities in Turkiye.
Dhaka Chamber President and leader of the delegation Rizwan Rahman said that in FY2020-21 the bilateral trade between Bangladesh land Turkiye was $871.55 million which is in favor of Bangladesh. But the volume is not to the expected level. Turkiye is the 23rd largest export destination of Bangladesh. Turkiye is the 29th largest foreign investor in Bangladesh amounting $30.51 million.
Rizwan Rahman also said that Bangladesh and Turkiye can work and advocate together to form an effective D-8 economic bloc.
He urged Turkiye to transfer state-of-the-art industrial technology. He also urged for capacity building of SMEs, research collaboration, strengthening of agro-value chain and knowledge exchange. He also said that the existing bilateral trade volume does not reflect the actual trade potential between these two friendly countries. He later invited Turkish investors to invest in Bangladesh as well as import more from Bangladesh.
Later the business delegation members of Dhaka Chamber had interactive business-to-business match-making with more than 350 Turkish companies of different manufacturing and service sectors after the business forum.
After that Rizwan Rahman had a separate meeting with the President of the Istanbul Chamber of Commerce Şekib Avdagiç.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
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