Economy
Finance Minister Addresses Loan Pressure, Anticipates $3.56 Billion Payment in FY24
Finance Minister Abul Hassan Mahmood Ali stated today that the government is facing pressure to repay foreign loans, but the situation is not yet dire. Responding to reporters during a press briefing after a meeting with an IMO delegation, he mentioned that foreign loan repayments are ongoing. Data from the Economic Relations Division (ERD) indicates that Bangladesh paid $2.67 billion in interest and principal on loans in fiscal year 2022-23, compared to $2.01 billion in the previous fiscal year. The increase is attributed to the end of grace periods for many loans and rising interest rates on market-based loans.
ERD’s projection suggests that Bangladesh will need to pay $3.56 billion in the upcoming fiscal year (FY24). Debt payments are expected to rise to $4.21 billion and $4.72 billion in FY25 and FY26, respectively. Minister Abul Hassan acknowledged concerns about inflation, expressing a desire to see it decrease. He noted that despite decisions taken by the new government to improve the economic situation, implementation is pending.
Returning from the IFAD conference in Italy, Minister Abul Hassan highlighted Bangladesh’s significant assistance from IFAD, totaling around $2 billion, with expectations of increased support in the future. Regarding the meeting with the IMO delegation, he mentioned ongoing assistance from the migration agency to Bangladesh in areas related to migration and beyond.
The newest tranche of US funding will assist Bangladesh towards a more inclusive, equitable and democratic course for its people, the US Embassy in Dhaka said today (16 September).
According to the embassy, from 2021-2026, USAID has committed nearly $1 billion to help improve the lives of the Bangladeshi people.
During the US delegation’s visit yesterday (15 September), USAID signed a development agreement worth over $200 million with the interim government to support Bangladesh in advancing development, strengthening governance, expanding trade, and creating greater opportunities for the Bangladeshis to build a brighter and more prosperous future.
The officials discussed ways to support inclusive economic opportunities for the people of Bangladesh, ensure financial stability, and strengthen democratic governance.
The US interagency delegation held meetings with key advisers for the Bangladesh interim government, including Chief Adviser Prof Muhammad Yunus, Foreign Affairs Adviser Touhid Hossain, and Finance and Commerce Adviser Dr Salehuddin Ahmed yesterday.
The US delegation included Department of Treasury Assistant Secretary Brent Neiman, Assistant Secretary of State for the Bureau of South and Central Asian Affairs Donald Lu, USAID Deputy Assistant Administrator for Asia Änjali Kaur, and Assistant US Trade Representative Brendan Lynch.
Bangladeshi landowners are set to regain around 200 acres of land that had shifted into Indian territory due to the erosion of the Padma River along the Daulatpur border in Kushtia. This decision followed a joint agreement reached during a meeting between the Border Guard Bangladesh (BGB) and India’s Border Security Force (BSF) on Sunday.
The land in question, situated in the Challishpara area of Ramkrishnapur union, became disputed due to the shifting course of the Padma River and natural disasters, which disrupted boundary markers over a three-kilometer stretch. The issue was first identified in a survey earlier this year.
Lieutenant Colonel M Mahbub Murshed Rahman, commander of BGB’s 47th Battalion, confirmed the decision to resurvey the area and return the land to its rightful owners. A survey on February 10 revealed that approximately 200 acres of Bangladeshi land had ended up inside Indian territory, while 40 acres of Indian land were found in Bangladesh.
Both countries plan to officially correct the boundaries in October, following the resurvey. Sunday’s meeting, held at the Jamalpur Border Outpost, also addressed broader issues like preventing border killings and tackling drug trafficking.
Lt Col Rahman stressed that no one will be allowed to use the disputed land until the resurvey is complete. He also expressed Bangladesh’s strong opposition to recent border killings, urging the BSF to prevent the detention of innocent citizens and curb illegal cross-border activities, especially ahead of Durga Puja.
The holy Eid-e-Miladunnabi, commemorating the birth and demise of Prophet Hazrat Muhammad (PBUH), is being observed across Bangladesh today with profound religious reverence. The observance was confirmed during the National Moon Sighting Committee’s meeting on September 4, held at the Islamic Foundation’s Conference Room in Baitul Mukarram National Mosque. The meeting was chaired by the Secretary of the Ministry of Religious Affairs, Md Abdul Hamid Jamaddar, as announced in a press release.
The committee confirmed that the moon of Rabiul Awal 1446 Hijri was sighted in the sky of Bangladesh on September 4, marking the beginning of the holy month of Rabiul Awal from September 5 (Thursday).
On this day in 570, Prophet Muhammad (PBUH) was born in Makkah, Saudi Arabia, bringing divine blessings and messages of peace to humanity. He passed away on the same date, 12th Rabiul Awal, of the Hijri calendar.
In honor of the occasion, President Mohammed Shahabuddin and the Chief Adviser to the interim government, Prof Dr Muhammad Yunus, issued separate messages, extending greetings to the people of Bangladesh and Muslims worldwide.
To mark the day, Bangladesh Television (BTV) and Bangladesh Betar are airing special programmes, while various national newspapers have published supplements underscoring the significance of the event. The day is also observed as a public holiday throughout the country.
