World Food Day Today
World Food Day 2022 is to be followed in the country today, 16 October, as elsewhere in the world in an appropriate manner.
This year’s theme of the day is “Kauke Poshchatey Rekhey Noy-Valo Uthpadoney Uttom Pushti, Surokkhito Poribesh Abong Unnoto Jibon”. which means “Leaving no one behind – better nutrition, safer environment and better life in better heat”.
The Agriculture Ministry and the Food and Agricultural Organization of the United Nations (FAO) jointly observe the day.
President M Abdul Hamid and Prime Minister Sheikh Hasina issued separate messages on the evening of the day.
In his message, President Abdul Hamid said agriculture is one of the main drivers of poverty reduction and economic development in Bangladesh.
Highlighting the role of Father of the Nation Bangabandhu Sheikh Mujibur Rahman in the agriculture sector of the country, he said Bangabandhu called for agricultural revolution in rebuilding the country.
Bangabandhu ensured the distribution of Khas land, fertilizers, pesticides, improved seeds and other agricultural outputs among the farmers, the head of the state recalled.
Regarding this, the country has achieved self-sufficiency in food grains as a result of the adoption of appropriate policies and measures by the government, he said, adding that along with crops, enormous success has been achieved in the animal-protein sector.
If agricultural production is increased alongside controlling inflation, it will be possible to earn foreign exchange by exporting food products at high prices to the world market, he said.
He stressed the need for continuing relentless efforts of all concerned for developing and expanding new nutrient-rich crop varieties and appropriate technologies in order to sustain food and nutritional security.
Prime Minister Sheikh Hasina said in continuation of the plans and programs taken by Father of the Nation Bangabandhu Sheikh Mujibur Rahman, the Awami League government has been taking and implementing various agriculture-friendly and realistic initiatives for the development of agriculture for the last 13.5 years.
Taking the development of agriculture and farmers’ welfare into the highest consideration, a range of work plans and initiatives, including the National Agriculture Policy 2018, Sustainable Development Goals (SDGs)-2030, Delta Plan-2100 and the Food Safety Act, have been taken by the government, the premier said.
Initiatives were also taken to ensure the distribution of agriculture-based loans, the opening of bank accounts with Tk10 and innovation of climate-tolerant varieties and technologies, Sheikh Hasina said.
“We have increased allocation further in agriculture research and education,” she added.
“We have constructed the Padma Bridge with our own funding to establish uninterrupted, cost-effective and speedy communication between 21 districts of the South-Western region with the capital,” she continued.
Through this bridge, the quality of farmer’s life in the region will improve, she added.
She hoped that a happy, prosperous and developed Sonar (Golden) Bangladesh as dreamt by Bangabandhu can be built by 2041 with the participation of the government as well as everyone by meeting nutritional needs through ensuring safe food and eliminating hunger and poverty.
Both the president and the premier wished for the overall success of all programs taken on the occasion of World Food Day 2022.
’17 Banks Facing Liquidity Crisis over Violating Loan disbursement limit’
Despite Bangladesh Bank’s initiatives to promote good governance in the banking sector, 17 banks have recently violated their loan disbursement limits, and are now embroiled in a severe liquidity crisis.
Having been over-aggressive in providing loans, they are now unable to recover the loans and attract new deposits as desired, according to the latest internal report of the central bank.
The banks should not sanction any new loans until they restore the ratio of their loans to deposits in accordance with limits set by Bangladesh Bank, which regulates the financial sector.
Conventional banks can provide loans of up to Tk 87 for every Tk 100 in deposits, while Shariah-based banks can give loans of up to Tk 92 for every Tk 100 in deposits, according to the rules of Bangladesh Bank.
This is called Advance Deposit Ratio (ADR) or loan-deposit ratio limit in banking terms.
According to the central bank report covering January 1-26 of this year, 17 banks violated the limits set for them on lending orders due to a lack of discipline.
As a result, the concerned banks have been plunged into an extreme liquidity crisis, making it difficult for them to sanction new loans. Some of them are even unable to pay depositors in some cases.
Experts fear that the existing situation has created additional risks for depositors. According to them, irregularities, corruption and ‘ghost loans’ – loans to firms that turn out to be non-existent -are behind the collapse of the banking system’s loan disbursement process.
“In the banking sector, there have been allegations of giving large amounts of ghost loans in recent times. If this continues, the sector will be at risk,” said ABM Mirza Azizul Islam, economist and adviser on finance to the last caretaker government.
Mirza Azizul told, “Lending beyond the limit against deposits disrupts the credit system.”
Besides, the debt collection situation of the banks is not satisfactory now. In such a situation, if the non-performing loans increase further with additional loans, then there is a danger for the bank and its depositors will suffer, he added.
He suggested the intervention of the central bank in these banks immediately.
According to the Bangladesh Bank report, the ADR of National Bank Ltd stood at 98.23 while that of AB Bank was 96.64 in its conventional stream and 103.45 in its Shariah stream.
State-owned Basic Bank’s ADR stood at 91.17, One Bank’s was 89, and multinational National Bank of Pakistan’s was 87.52. Widespread irregularities and corruption have already been reported in these banks.
Apart from this, Community Bank’s ADR was 88.28, NRB Bank at 88.05 and IFIC Bank’s ADR was 87.48, the report states.
Shariah-based Exim Bank’s ADR stood at 100.28, Standard Bank’s at 96.28, Premier Bank’s Islamic Window 155.09 and Bangladesh Commerce Bank’s Islamic Window’s ADR was at 133.26.
Apart from this, the ADRs of five other Shariah-based banks ranged between 93.01 and 104.54.
A managing director (MD) of a private bank told that the lending limit has undoubtedly been set by Bangladesh Bank based on adequate research and global best practices. No bank should have to cross the limit.
“These violations are creating risk in the banking sector. Depositors in particular will be at greater risk. Already some banks and non-bank financial institutions are not able to return money to depositors,” he said, maintaining anonymity.
The central bank has also extended the period of ADR adjustment five times to allow the banks to bring their lending practices in line with the limits.
However, many banks could not coordinate this. In such a situation, Bangladesh Bank even increased the required ADR to improve the overall liquidity situation of the banking sector to maintain the pace in credit flow to the private sector.
The executive director and spokesperson of Bangladesh Bank, Md Mezbaul Haque, told that although some banks may at times find themselves in violation of the ADR set for them, the central bank would under normal circumstances give them time to get themselves back within the limit.
“But if they stay outside the limit for long, then they must be warned and action would be taken accordingly,” Mezbaul said.
BD, Bhutan penned agreement on Movement of traffic in transit
Bangladesh and Bhutan have signed an agreement on the movement of traffic in transit on Wednesday (22nd March).
Commerce Minister Tipu Munshi signed the agreement on behalf of the government of Bangladesh.
This landmark agreement is expected to facilitate trade and commerce between both countries for shared prosperity, said the Ministry of Foreign Affairs to the news media.
Ramadan Fasting to begin on Friday
Muslim authorities in Saudi Arabia and several other Middle Eastern countries announced this year’s fasting month of Ramadan will begin Thursday based on the expected sighting of the crescent moon. However the capital, Dhaka to begin fasting from Friday.
Clerics across the region said the moon was not visible Tuesday night, meaning it will almost certainly appear the following evening, heralding the start of the monthlong observance.
During Ramadan, Muslims refrain from eating, drinking, smoking, and having sexual intercourse from sunrise until sunset. Even a tiny sip of water or a puff of smoke is enough to invalidate the fast. At night, family and friends gather and feast in a festive atmosphere.
The fasting is aimed at bringing the faithful closer to Allah and reminding them of the suffering of the poor. Muslims are expected to strictly observe daily prayers and engage in heightened religious contemplation. They are also urged to refrain from gossiping, fighting, or cursing during the holy month.
Fasting is one of the five pillars of Islam and is required for all healthy Muslims. But there are exemptions for those who are ill, and for women who are pregnant or breastfeeding.
Islam follows a lunar calendar, so Ramadan begins around a week and a half earlier each year. At the end of Ramadan, Muslims celebrate the joyous Eid al-Fitr holiday, when children often receive new clothes and gifts.
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