Economy
PM’s State Visit: Dhaka, Delhi eye signing dozen of instruments; new initiatives to strengthen cooperation
Bangladesh and India are likely to sign over a dozen of bilateral instruments with some new initiatives by identifying new areas of cooperation during Prime Minister Sheikh Hasina’s state visit to India on 21-22 June, officials have said.
The two-day state visit is taking place at the invitation of Indian Prime Minister Narendra Modi that might carry some directives giving a picture of greater cooperation between the two countries in the future, they said.
This will be the first full-fledged bilateral visit by any head of government to India after the Bharatiya Janata Party (BJP) formed its government for the third consecutive term.
This will be Hasina’s second trip to the Indian capital in less than 15 days. She was among the dignitaries invited to Modi’s swearing-in ceremony on 9 June.
Though it is unlikely to see any breakthrough on Teesta water sharing deal specifically at this moment, the issue will come up for discussion in addition to a likely discussion on broader Teesta and relevant projects on development and management, a senior official told UNB on Tuesday.
Earlier on 9 May, India reportedly expressed interest to finance Bangladesh’s Teesta project which is known as “Teesta River Comprehensive Management and Restoration Project”.
“You know, we have taken a big project on Teesta. India wants to finance this project. It will have to be implemented in line with our needs. We want to see our needs fulfilled,” Foreign Minister Hasan Mahmud told reporters after his meeting with Indian Foreign Secretary Vinay Mohan Kwatra at the Ministry of Foreign Affairs on 9 May.
The renewal of the Ganges Water Sharing Treaty will also come up for discussion, officials said.
Earlier in 2022, the two leaders welcomed the formation of a Joint Technical Committee to conduct a study for optimum utilisation of water received by Bangladesh under the provisions of Ganges Water Sharing Treaty.
Foreign Secretary Masud Bin Momen recently said the two countries are scheduled to sign a number of MoUs and agreements and there is an issue of making some announcements on some areas of cooperation.
“There will be continuity of the relations, and we expect to see some new initiatives in our relations,” he told reporters on the sidelines of a reception recently.
Former State Minister for Foreign Affairs Md Shahriar Alam said they would take the Bangladesh-India relations to a new height in the next five years as there are new governments in place in the two neighbouring countries with continuity amid new mandate.
“There will be a stock-taking on what we left in September 2022 and we will take the relations to a new height in the next five years,” he said on Friday, noting that the expectations and aspirations are sky-high.
Recalling earlier discussions, Prime Minister Sheikh Hasina, during her state visit to India in September 2022, reiterated Bangladesh’s long pending request for concluding the interim agreement on the sharing of the waters of the Teesta River, the draft of which was finalised in 2011.
Referring to Land Boundary Agreement – LBA – and resolving maritime dispute with India, Shahriar said the countries would gradually be able to resolve the unresolved issues as complex issues had been resolved.
He said there was a 33-point joint statement issued during the state visit of prime minister of Bangladesh to India in September 2022 where issues like Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, people to people contacts, broader connectivity and others were mentioned.
Shahriar said the upcoming visit of the prime minister will help advance the relations on those areas.
He hoped that the next meeting of the Joint Rivers Commission (JRC) will be held soon, noting that the 38th meeting of the JRC was held in New Delhi in August, 2022 wherein various matters pertaining to cooperation in water resources sector were discussed.
Joint Rivers Commission (JRC) has been functioning since 1972. It was established with a view to maintain liaison in order to ensure the most effective joint effort in maximising the benefits from common river systems. The JRC is headed by water resources ministers of both the countries.
Sources in the Foreign Ministry indicate that key issues on the agenda include cross-border connectivity initiatives, Indian investments in the Teesta special economic zone, management of Mongla port, and power trade.
Additionally, discussions on a potential trade pact are expected.
Over the past decade, numerous cross-border initiatives have been launched as part of a robust regional partnership plan.
The Modi-Hasina summit on 22 June might also focus on enhancing the defence partnership between the two nations.
This visit marks Sheikh Hasina’s third trip to New Delhi since September 2023, underscoring the strengthening ties between India and Bangladesh.
Bangladesh says India is a friendly country and Bangladesh does not compare the Dhaka-Delhi relations with anyone else. “India stood beside us during the War of Liberation in 1971. Our relationship with India is multifaceted. We share borders with India. We are supportive of each other,” Hasan Mahmud said.
PM’s engagements in New Delhi
A flight from Biman Bangladesh Airlines carrying PMHasina and her entourage will depart Hazrat Shahjalal International Airport on Friday at about 2pm, according to the sources in the Foreign Ministry.
The flight will land at Palam Airport, New Delhi at about 4pm (Delhi time) where high-level dignitary of India and Bangladesh High Commissioner to India Md Mustafizur Rahman will welcome her.
In the evening, Minister of External Affairs of India S Jaishankar will call on her at the Meeting Room of her Place of Residence, Hotel Taj Palace.
On Saturday morning, a red carpet will be rolled out at Rashtrapati Bhavan to receive Prime Minister Sheikh Hasina by her Indian counterpart through a ceremonial reception where the National Anthems of Bangladesh and India will be played. She will also inspect the Guard of Honour.
After that, she will go to Raj Ghat to pay tribute to the father of the Indian Nation Mahatma Gandhi by placing a wreath at his Samadhi. She will also sign the visitor’s book there.
Later on the same day, Sheikh Hasina will go to Hyderabad House to hold a tete-a-tete with Prime Minister Narendra Modi followed by delegation- level talks.
Both will witness the signing ceremony of the MoU and agreements.
After that, both the prime ministers will give their press statements. Then they will attend a Banquet Luncheon hosted by the Prime Minister of India in honour of the Prime Minister of Bangladesh at Hyderabad House.
In the afternoon, Hasina will call on the Vice President of India Jagdeep Dhankhar at his Secretariat.
In the evening Sheikh Hasina will call on the President of India Droupadi Murmu at Rashtrapati Bhavan.
At 6 pm (Delhi time), the prime minister will depart from Palam Airport, New Delhi by a flight of Biman Bangladesh Airlines and will land in Dhaka at about 9pm.
The National Board of Revenue (NBR) is preparing to scrutinize government officials suspected of amassing illegal wealth and assets through corrupt practices. This move aligns with the government’s broader goal of creating a corruption-free and fair Bangladesh.
NBR Chairman Md Abdur Rahman Khan, speaking at the inauguration of a recent NBR program, emphasized the importance of this initiative. “We definitely aim to establish a discrimination and corruption-free Bangladesh,” he said, noting that preparations for this effort are already underway. Khan, however, cautioned that the progress of these preparations might not be immediately visible to the public, stating, “You cannot see the move of these preparations from the outside.”
Submission of Wealth Statements by Government Officials
In parallel, Md Mokhles Ur Rahman, Senior Secretary of the Ministry of Public Administration, announced that all government officials and employees must submit their wealth statements by November 30 to their respective ministries and departments. Furthermore, wealth reports will be required annually, with a deadline of December 31 each year.
The submission of these statements is part of a broader government strategy aimed at increasing transparency and accountability. The government has provided a specific format for the wealth declarations, which must be submitted in sealed envelopes to the relevant authorities. Any failure to submit the statement or providing false information will result in legal consequences.
NBR’s Ongoing Preparations
While the NBR chairman did not provide an exact timeline for when actions against corrupt public servants would begin, he reassured the public that the organization is steadily advancing its efforts. “We are putting matters on the right track gradually, placing the right things in the right place,” he remarked, noting that the NBR is currently collecting relevant data on this issue.
Legal Framework and Historical Context
According to the Government Servants (Conduct) Rule, 1979 (amended in 2002), all government servants are required to submit wealth statements when they begin their service and update them every five years. This rule was originally intended to combat corruption and ensure accountability, but it has largely remained limited to paper, with little enforcement. Despite several letters from the ministry over the years, there has been little progress in implementing these regulations.
However, the interim government has recently reinforced these requirements, driven by growing concerns about corruption within the public sector. On August 14, the interim government’s Legal Adviser, Professor Asif Nazrul, announced that all judicial officers and their families must submit both domestic and international asset declarations within 10 working days, following consultations with the Supreme Court.
Widespread Corruption Sparks Action
Allegations of widespread corruption have put the issue of illegal wealth among government employees in the spotlight. This has prompted renewed calls for greater accountability and stricter enforcement of wealth declaration rules to curb corruption within the public sector.
The most pressing challenges facing industries over the past six months have been the scarcity of bank funding and ongoing issues with gas and electricity supply, according to Ashraf Ahmed, President of the Dhaka Chamber of Commerce and Industry (DCCI).
Speaking at a seminar titled “Bi-economic State and Future Outlook of Bangladesh Economy – Private Sector Perspective,” organized by the DCCI on September 28, Ahmed stated, “We are still grappling with gas and electricity shortages. If we cannot address the issues of labour unrest and energy shortages, and fail to keep factories operating continuously for at least four hours a day, it will severely impact exports.”
Ahmed further noted that production in Micro, Small, and Medium Enterprises (MSMEs) is also declining. He warned that if these challenges persist, they would not only affect export levels but also significantly harm employment.
Impact on Non-RMG Sectors and the Importance of Alternative Solutions
The DCCI president emphasized that the crisis extends beyond the ready-made garment (RMG) sector, severely impacting non-RMG sectors as well. “We are already hearing that gas reserves are depleting. However, if the nuclear power plant is connected to the grid by the end of this year, there may be a positive shift. Immediate alternative measures are critical to overcoming this situation,” he added.
Ahmed also highlighted that labour unrest, initially confined to Ashulia, has now spread to other regions, raising concerns about its potential to disrupt industrial stability further.
Threat to Investment and Call for Confidence Restoration
Addressing the broader economic outlook, Ahmed stressed that restoring confidence in resolving the energy and labour crises is vital for maintaining investment levels. He warned that private sector investment growth, which has remained around 24% over the past three to four years, could face setbacks if confidence is not rebuilt.
Financial Reforms and Economic Stability
In his address, Ahmed pointed out that the interim government had proposed several financial reforms aimed at stabilizing the economy. “If these reforms are properly implemented, they will positively influence the economy, although it may take time to see results. Increasing tax revenue is also crucial for improving the government’s capacity to repay international debts, so revenue collection should be prioritized,” he noted.
Ahmed also remarked on Bangladesh Bank’s efforts to curb inflation by raising the policy rate. However, he cautioned that the effects of this measure would take three to six months to materialize. He also highlighted the need for careful handling of reforms in the banking sector, particularly for the 10 to 12 weak banks under scrutiny, to avoid negative consequences for the entire industry.
Recommendations for Industry and MSMEs
In his concluding remarks, the DCCI president recommended that bank loans to the industrial sector and MSMEs should be maintained at a consistent, normal level to ensure the stability and growth of these sectors.
Speakers at a discussion today said all people of the country have the right to seek and receive information from government entities (except those concerning national security) and private authorities to ensure transparency.
The right to access information is an integral part of the right to freedom of thought, conscience, and expression, said the speakers marking International Information Rights Day 2024 at a discussion at the information commission in Dhaka’s Agargaon area.
The speakers said Bangladesh has enacted the Right to Information Act to ensure the free flow of information to establish good governance.
Transparency International Bangladesh (TIB) Executive Director Dr Iftekharuzzaman and Information and Broadcasting Ministry Additional Secretary (secretary in-charge) Md Nazrul Islam spoke the discussion as special guests with Information Commission Director SM Kamrul Islam in the chair.
Directorate of Primary Education Dr Md Abdul Hakim presented the keynote paper while Information Commission Deputy Director Md Salah Uddin gave the welcome address.
They said the act has formed a path for establishing good governance along with ensuring transparency and accountability in the activities of all government and non-government organisations.
The speakers noted that the Information Commission is working relentlessly to bring the benefits of the RTI Act to the doorsteps of the people.
All stakeholders including government entities, and electronic and print media should be involved in creating awareness among people about the RTI, they said.
They also said every government organisation is bound to provide all information that the people have the right to know.
