Economy
Why $12.2b export proceeds pending abroad in 9 months of FY24?
When the country is in dire need of dollars amid a fast erosion of its foreign exchange reserves, $12.2 billion of its total export proceeds remained pending abroad in the first nine months of the fiscal 2023-24 – taking the gap between export receipts and shipment value to a historic high.
Bangladesh Bank data shows that export shipment value, as reported by the Export Promotion Bureau (EPB), was $40.8 billion in July-March of FY24. However, export receipts through the banking channel were $28.6 billion. The gap of $12.2 billion was reflected in trade credit, a component of the financial account of the country’s balance of payment statement.
The widening gap between export realisations and shipment value has put pressure on the country’s financial account, as it is reflected in trade credit. The deficit in the financial account reached a record high of $9.2 billion in July-March, compared to $2.9 billion in the same period of the previous fiscal year, according to central bank data.
Earlier in the FY23, export receipts fell short of the value of shipments by $12 billion, a historic high, raising concerns among the Bangladesh Bank. However, this figure may be even higher by the end of FY24 if the current trend continues.
When contacted, a senior executive of the Bangladesh Bank, involved in preparing the balance of payment statement, explained the rising trade gap, saying that they found a significant mismatch between the EPB-reported export data and the realisation of export proceeds.
The central bank is now working to find out whether export proceeds are not coming home or if there is a problem with the shipment value reported by the EPB, he said.
He added that if any mismatch is identified in accounting between the shipment and realisation values of exports, it will ease the pressure on the financial account.
When asked for an official comment on this matter, Bangladesh Bank Spokesperson Md Mezbaul Haque did not respond.
At present, trade credit reflects the highest negative value among all components of the financial account statement. Trade credit became negative $12.24 billion from July-March of FY24, compared to only $3.96 billion in the corresponding period of the previous year.
Central bank data shows that trade credit has turned significantly negative from positive since last fiscal year, with a widening gap between export shipment and realised value.
In the FY22, trade credit was a positive $311 million, and the financial account had a surplus of $16.6 billion.
Though the unrealised export value is rising, bankers have been experiencing a general trend in export repatriation.
When speaking to the news reporter, a senior executive of a private commercial bank said that the export repatriation trend is normal in his bank. He emphasised, “If exporters do not repatriate their proceeds, how will they run their factories?”
While common factors such as time lag and export bill discounts can account for mismatches between shipment and realised values, a senior executive at the Bangladesh Bank noted that the recent trend of unrealised export proceeds is unusually high.
The mismatch between export shipment and realised value has been notably pronounced over the last two years since FY22, following Bangladesh Bank’s decision to devalue the taka amidst a rising dollar crisis.
In the FY22, unrealised export proceeds reached $8.4 billion, with export receipts lagging 16% behind the shipment value of $52 billion, as disclosed by Bangladesh Bank data in the publication titled “Export Receipts of Goods and Services.”
Central bank data demonstrated that unrealised export proceeds ranged from 10% to 12% of the export shipment value between FY07 and FY21, with figures varying from $1 billion to $5 billion.
Responding to queries regarding the escalating value of unrealised exports during a monetary policy announcement event in June last year, Bangladesh Bank Governor Abdur Rouf Talukder explained that some exporters were deliberately delaying the repatriation of export proceeds to capitalise on currency devaluation.
He mentioned that exporters were permitted to retain export proceeds in their Export Retention Quota (ERQ) account, with a six-month time lag existing between shipment and receipt.
However, he expressed optimism that the Bangladesh Bank’s issuance of a circular to deter gains from devaluation would contribute to reducing the unrealised export value.
Earlier in March last year, the central bank issued a circular stating that exporters would be paid based on the dollar rate on the 120th day of export shipment, even if the proceeds came later. However, this circular seems to have had no impact on export repatriation.
Later, in another circular issued on 20 May, the Bangladesh Bank revised that policy, allowing exporters to receive the dollar rate on the day of encashing export proceeds. As a result, exporters will have an opportunity to receive the current dollar rate even if they encash the export proceeds after the 120th day.
State Minister for Commerce Ahsanul Islam Titu announced today that Bangladesh is set to sign agreements with Myanmar and India to import essential goods. Speaking at an event organized by the Bangladesh Secretariat Reporters Forum (BSRF) at the secretariat, Titu said the Trading Corporation of Bangladesh (TCB) will sign the agreements on behalf of the government.
The agreement with India aims to ensure a steady supply of daily essentials. Additionally, a deal with Myanmar is being finalized to import essential commodities and enhance river transport communication. Titu mentioned that they hope to sign the agreement with Myanmar in July.
“Our primary goal is to provide relief to the common people and maintain market stability. These steps are part of our efforts to achieve that,” he stated.
Titu also highlighted the importance of expanding land ports and border haats (markets) to facilitate trade, particularly in remote border areas. He emphasized the government’s initiatives to improve facilities for people living in these regions.
The event was conducted by BSRF President Fasih Uddin Mahtab and General Secretary Masudul Haque.
From his birthplace in Barishal to Dhaka, Gazipur, Narsingdi, and Feni, extensive properties have been found linked to former NBR official Matiur Rahman, who came to the limelight after his son attempted to purchase a sacrificial goat for Tk15 lakh.
The properties include land, apartments, factories, luxurious houses, and resorts. While some are registered under Matiur Rahman’s name, a significant portion is held in the names of his first wife Laila Kanis Lucky, his son, daughter, and various relatives.
The highlight of Matiur’s reported assets appears to be Wonder Park, an amusement park in Narsingdi’s Raipur upazila linked to his first wife. The park occupies around 15 bighas of land.
Additionally, Apon Bhuban Picnic and Shooting Spot, a sprawling 60-bigha resort reportedly co-owned by Matiur and his wife, boasts various amenities and has been used for filming locations.
Matiur is now attached to the Internal Resources Division (IRD) of the finance ministry after being removed as the president of NBR Customs, Excise and VAT Appellate Tribunal.
Currently under investigation by the Anti-Corruption Commission (ACC) for allegedly possessing undisclosed assets, he had constructed two luxurious duplex houses—one for his first wife and another for his second wife’s mother.
Additionally, he also has investments in the capital market, which served as a significant source of his wealth accumulation.
Matiur is currently not available for comment and his whereabouts is also unknown.
Assets and influence in his own village
In Bahadurpur village of Barishal’s Muladi upazila, a gate with a minaret marks the Howlader House. Nestled between a three-storey madrassa and a two-storey mosque, it’s the childhood home of Matiur Rahman, a schoolteacher’s son better known locally as Pintu.
According to locals, Matiur’s village property spans a sizable 1.45 acres, with additional agricultural land estimated between 20 and 50 acres. While the ownership of the agricultural land remains unclear, locals claim his family has accumulated significant holdings in recent years.
They point to Matiur’s younger brother, Qaiyum Howlader, who they believe possesses even greater wealth in the area.
Qaiyum also was not available for comment.
Villagers say Qaiyum, a former leader in local BNP, saw his fortunes rise with Matiur’s ascension to the NBR.
Qaiyum eventually established a travel bag manufacturing factory in Tongi and expanded into other local businesses. Two years ago, he purchased a house worth Tk10 crore in Muladipur.
Contacted, Matiur’s cousins, currently living in Bahadurpur, vehemently deny the allegations against the family.
“These claims are a conspiracy against Boro Mia [Matiur],” said Mahamudunnabi, his cousin.
“He [ Matiur] has built his wealth through hard work and responsible living. Even during his school days, he was known for his frugality, saving every penny.”
Another cousin, Fakhruddin Hawlader, said that both he and Mahmudunnabi look after the mosque and madrasa established by Matiur under the Howlader Foundation, which he claims is funded by donations from locals.
Fakhruddin further said Matiur has established the Rahmania Technical School & BM College, a cyclone shelter, mosque, madrasa, and health centre near his residence. All the establishments are overseen by the Howlader Foundation.
He said Matiur facilitated the construction of a cement-block embankment along the Koyla Canal in Bahadurpur village by the Water Development Board.
However, Kazirchar Union Chairman Montu Biswas alleged that Matiur established the technical school and college by occupying land in the Koyla Canal. “The closure of the canal is causing problems in agriculture,” he said.
According to locals, Matiur’s father, Abdul Hakim, was a school teacher and the union BNP vice-president. Following his retirement in 2003, he was also elected as the chairman of the local union parishad.
There are allegations that Matiur used his money and influence to help his father get elected.
Locals ‘forced’ to sell land for Wonder Park in Narsingdi
The Wonder Park in Narsingdi’s Raipura upazila, linked to his first wife Laila Kanis Lucky, seems more like a forgotten dream than a thriving amusement centre.
A news reporter visit reveals a desolate scene – a Tk 200 entry fee followed by additional charges for rides that are malfunctioning and shrouded in dust. No staff are present to operate them.
Couples occasionally enter, but the silence and deserted atmosphere are unsettling.
Locals recall a more vibrant past. Young men reminisced about playing in a field that’s now vanished. There’s also a 2-3 bigha lake beside the park, with white ducks enjoying its waters.
No one felt comfortable talking about Laila Kanis.
A resident, speaking anonymously, described her land acquisition tactics. “Kanis simply informed landowners she needed the property. Negotiation wasn’t an option, and given their powerful position, refusal wasn’t either.”
A local woman recounted a similar story. “They took our land, which was worth Tk60,000 per decimal at the time, and offered a paltry Tk1 lakh in return.”
Others shared experiences of receiving land payments in installments or at unfair rates.
Locals recall that Kanis’s father Kafil Master lived modestly in a mud house.
Now, she has a luxurious white duplex in Morjal village that stands out with its modern architectural style. It is surrounded by rows of domestic and foreign trees, a lush green yard, staff accommodations, and an aesthetically pleasing establishment nearby.
However, no one was found inside the large gate of the house.
Kanis also has a road named after herself near the Morjal High School in Raipura.
She is reportedly involved with the local Awami League as the district relief and disaster affairs secretary.
Asked about this, Narsingdi-5 lawmaker Rajiuddin Ahmed said, “I don’t know anything about Laila Kanis’s position in the party. The District Awami League can explain why they gave her the post. At that time, I was not closely connected with the District Awami League.”
There are also allegations that she was made upazila chairman without a vote, with the MP’s help, by forcibly removing other competitors from the candidacy.
On this allegation, Rajiuddin Ahmed said, “I did not make her the chairman; the one whom the people wanted became the chairman.”
Property disclosed in affidavit of Kanis
According to the affidavit submitted to the Election Commission during Laila Kanis’s chairman candidacy, her annual income from the agricultural sector is Tk18 lakh.
Additionally, she earns Tk9.90 lakh from house and shop rents, about Tk3.82 lakh from dividends on shares, savings, and bank deposits, Tk1.63 lakh from the upazila chairman’s honorarium, and about Tk1.19 lakh from bank interest. She has deposits totaling Tk3.55 crore in various banks and financial institutions.
Laila Kanis’s immovable properties include a total of 18.5 katha of land in various places, including Dhaka and Savar. She also has 99.65 decimals of land in different areas of Gazipur and 364.93 decimals in her district, Narsingdi.
Additionally, she has land in Jashore and Natore, and 154 decimals of agricultural land in her name. According to her tax files, she also owns multiple flats in the Bashundhara residential area in Dhaka.
60-bigha resort and more land in Gazipur
Adding to the questions surrounding Matiur Rahman’s wealth is the Apon Bhuban Picnic and Shooting Spot in Gazipur. This sprawling 60-bigha resort in Pubail’s Khilgaon area boasts a variety of amenities, all under Matiur and his wife’s name.
The picturesque property features charming bamboo and cane houses, a modern conference hall, a delightful mango orchard, and a lake adorned with bridges.
Guests can unwind at the restaurant, playgrounds, extensive north-facing garden, or the unique glass terrace. Additional features include a greenhouse, a bungalow house, and a fishing pond.
Previously used for film and drama shoots, Apon Bhuban has opened its doors to the public for an entry fee of Tk100.
According to park officials, employees, and locals, Matiur Rahman and his wife, Laila Kanis Lucky, acquired the land for Apon Bhuban with the assistance of a local influential figure, Aminul Islam.
Initial purchases totaled 35 bighas, with additional land either rented or acquired later to bring the total area to 60 bighas.
The resort boasts 18 cottages, each with a nightly rate of Tk7,000.
Locals seem familiar with the ownership structure. “Everyone knows Apan Bhuban belongs to Kanis madam,” remarked Sharif Hossain, a local shopkeeper, “and now we know she’s Matiur Rahman’s wife.”
Efforts to reach Rajib Mia, the supervisor of Apon Bhuban, were unsuccessful at the resort. However, he later confirmed via phone that the resort occupies roughly 60 bighas, with 35 bighas owned by the Matiur family and the remainder leased from local residents.
However, according to Gazipur district administration sources, there are 5 acres and 777 decimals of land registered under the name of Apan Bhuban Resort and Picnic Spot.
In addition to this resort, more land has been found registered under the names of Matiur, his wife, and children in various locations in Gazipur.
Duplex building for mother-in-law
In the Sonapur area of Sonagazi, Feni, Matiur Rahman built a luxurious house for his father-in-law. Locals say that upon the request of his second wife, Shammi Akhtar Shibu, Matiur Rahman gifted this duplex house to her mother-in-law ten years ago.
The management of this luxury house is overseen by a local man named Jasim Uddin. He mentioned that Matiur Rahman’s mother-in-law currently resides in her daughter’s house in Dhaka and occasionally visits the Sonagazi property.
“Two months ago, Matiur Rahman, along with his wife Shammi Akhtar Shibu, son Mushfiqur Rahman Ifat, and mother-in-law, visited the house and returned to Dhaka after a two-day stay,” Jasim Uddin added.
Locals also mentioned that Matiur Rahman holds some land in Feni and Sonagazi under the names of relatives, with his wife’s cousin Arifur Rahman overseeing these properties.
In Narsingdi’s Raipura upazila, a veil of silence prevails, driven by fear and perhaps paranoia. No one has seen anything, heard anything, or knows anything about Laila Kanis Lucky.
Lucky, the wife of Matiur Rahman—a former National Board of Revenue official who recently gained attention when his son from his second marriage attempted to buy a goat for Tk15 lakh—has become a controversial figure. Her sudden prominence and the scrutiny of her assets followed the goat purchase incident.
Just two years ago, Laila Kanis was a retired government college teacher, unknown in Raipura’s political arena and uninvolved in any political activities. Today, she is the upazila chairman.
Locals, when they do speak about her, first mention Lucky Park—an eerie, ghost-like amusement park. A visit to Wonder Park, commonly known as Lucky Park, reveals layers of mystery. The entry fee is Tk200, with additional charges for the rides, according to the receptionist, Baten.
The park, however, is eerily deserted, with dust-covered rides and no operators in sight. Couples occasionally enter, only to find silence.
Posing as YouTubers, news reporters tried to gather information from visitors. One child recalled the park’s vibrant past, saying, “Even 3-4 years ago, we used to play here. There was a field, but now it’s gone. The park was renovated, and we lost our field. Now we come daily to hang out.”
Another visitor, Shamim, had just ordered a plate of fuchka. “This is a park for only young couples, you know what I mean,” he said with a sly smile, gesturing to the emptiness around.
Roaming the park, the story of a lake emerges, adding another layer to the enigmatic narrative surrounding Laila Kanis Lucky.
