Economy
Global Factors, Not Mismanagement, Behind Economic Challenges: Salman F Rahman
Salman F Rahman, the private industry and investment adviser to the Prime Minister, stated today that the challenges facing Bangladesh’s economy stem from global factors rather than domestic mismanagement.
Speaking at the One Stop Service (OSS) implementation progress review meeting at the Bangladesh Investment Development Authority’s (Bida) headquarters, Rahman highlighted the impact of international events on the country’s economic situation.
“The country’s economy is facing many challenges. These are not due to our mismanagement but are a result of the international situation,” Rahman said. He emphasized that Bangladesh efficiently managed the Covid-19 crisis, but the problems began after the outbreak of the Russia-Ukraine war.
Rahman pointed out that the Federal Reserve’s interest rate hikes led to a stronger dollar, putting pressure on Bangladesh’s reserves. “Prices of commodities, fertilizers, and fuel increased significantly, causing added stress on our economy,” he noted.
To mitigate these pressures, Rahman underscored the need for increased investment, both domestic and foreign. He stated that the successful implementation of Bida’s OSS could facilitate this investment. “We have received complaints that despite going online, people still need to visit physically and submit paper documents. These issues will be discussed today to expedite the remaining services,” he said.
During the meeting, Bida Executive Member Mohsina Yasmin presented a report on OSS implementation progress. However, journalists were asked to leave before the detailed discussion, which continued for about two and a half hours. After the meeting, Bida released a statement announcing that memorandums of understanding (MoUs) have been signed with 48 organizations, adding 101 services from 41 organizations to the OSS. Including Bida’s own 23 services, a total of 124 services are now provided through the OSS.
Mohammad Salahuddin, secretary to the Prime Minister’s Office, stressed the importance of investment in overcoming current economic challenges. “We need to remove all obstacles to increase domestic and foreign investment, and everyone must work together for this purpose,” he said.
Bida Executive Chairman Lokman Hossain Miah, who presided over the meeting, compared the investment service timelines of other countries, stating, “Vietnam provides investment-related services in 29 days and Indonesia in 48 days. We hope to add all investment services to the OSS in the next 2-3 months, enabling us to provide these services within a month.”
Chief Adviser Prof Muhammad Yunus on Thursday paid tribute to the Armed Forces Division by placing a floral wreath at its headquarters.
Prof Yunus, who visited the division as part of his official duties, laid the wreath to honor the sacrifices and dedication of the members of the Armed Forces.
Following the wreath-laying ceremony, he signed the visitor’s book.
Chief Election Commissioner (CEC) Kazi Habibul Awal, along with four other election commissioners, announced their resignation during a press conference today at the Election Commission (EC) building. The resignation follows growing speculation and pressure.
CEC Awal stated, “In this changed situation, I and other commissioners have decided to step down. We’re handing over our resignation letters to the EC Secretary to send it to the President.” After submitting the letters, the CEC and some commissioners quickly left the premises, with no clear explanation for the absence of two election commissioners.
The resignations come amid increasing unrest tied to the registration of political parties such as Nagarik Oikya and Gono Odhikar Parishad. Sources revealed the CEC felt unsafe due to aggressive behavior from activists, prompting the decision to step down.
Protesters outside the EC building hurled shoes at vehicles carrying Election Commissioners Rashida Sultana, Md Alamgir, and Anisur Rahman as they left. Meanwhile, preparations for their exit had already been underway, with the commissioners reportedly relocating personal belongings from their offices.
The commission, appointed in February 2022 for a five-year term, had previously expressed confusion over demands for their resignation, maintaining they had conducted fair elections. However, internal discussions led to the collective decision to resign earlier than expected.
The government will now purchase LNG from the international spot market through open tender instead of negotiation.
Cabinet Committee on Economic Affairs (CCEA) in a meeting on Wednesday in principle approved a proposal in this regard.
Adviser of the interim government for Finance Dr. Salehuddin Ahmed, who presided over the meeting, said that the government will procure LNG through open tender.
The Energy and Mineral Division of the Ministry of Power, Energy and Mineral Resources placed the proposal where it sought approval to import LNG from 23 listed companies in the international spot market.
The adviser said that though such 23 companies were enlisted by the previous Awami League government and signed Master Sales and Purchase Agreement, they will remain unchanged.
He said that instead of applying the Speedy Increase of Energy and Power Supply (Special) Act 2010, the interim government will follow the Public Procurement Rules 2008 to ensure the competitive bidding process.
“We don’t want to change them as we wanted to import LNG quickly, ensuring proper competition among the suppliers,” he told reporters.
Committee also approved another proposal in principle to sign a contract to import urea fertiliser for the 2024-25 fiscal year from Fertiglobe Distribution Limited, UAE, on a G-to-G basis.
Meanwhile, the Cabinet Committee on Government Procurement (CCGP) in a meeting, presided over by the Adviser for Finance, approved 3 proposals for import of lentil and fertiliser.
As per the proposal, the Trading Corporation of Bangladesh will procure 10,000 metric tons (MT) of lentil from local firm Sahara Enterprise at a cost of Tk 98.20 crore with each kg priced at Tk 98.20.
The Commerce Ministry which moved the proposal on behalf of the TCB in the meeting mentioned in the proposal that the supplier firm was selected through open tender.
The CCGP approved two separate proposals of the Industries Ministry under which Bangladesh Chemical Industries Corporation will import 30,000 MT of bulk granular urea fertiliser from Fertiglobe Distribution Limited, UAE, under state to state contract at a cost of Tk 121.48 crore.
Each metric ton of fertiliser will cost $343.17.
Another 30,000 MT of bagged granular urea fertiliser will be procured from the local Karnaphuli Fertilizer Company Limited (Kafco) at a cost of Tk 116.99 crore with each metric ton costing $330.50.
