Economy
UK Offers Support for Bangladesh’s Banking and Revenue Reforms
The United Kingdom has signaled its willingness to assist Bangladesh in overhauling its banking and revenue sectors, as well as its capital market.
This was revealed by Finance Adviser Dr. Salehuddin Ahmed following a meeting with UK High Commissioner Sarah Cooke on the morning of August 27 at his office in the Economic Relations Division (ERD) in Dhaka’s Sher-e-Bangla Nagar.
“Reforming these sectors is a pressing issue for us, and without these changes, our tasks will become significantly more challenging,” Dr. Salehuddin told reporters post-meeting.
The adviser further noted that the discussion included efforts to strengthen trade and commerce between Bangladesh and the United Kingdom.
“We aim to see growth in trade and commerce. The UK has historically been very supportive, and we anticipate their continued assistance in the future. We are eager for their cooperation,” he remarked.
During the meeting, Cooke and Salehuddin also touched on ongoing collaboration between the two nations.
“The UK is currently engaged with Bangladesh on economic development and women’s empowerment, and this cooperation will persist,” Salehuddin stated.
He also highlighted the importance of private sector investment, acknowledging significant contributions from major British corporations in Bangladesh.
Additionally, Dr. Salehuddin urged the UK to diversify its imports from Bangladesh, pointing out that the country primarily exports ready-made garments (RMG) to the UK and Europe.
He emphasized the necessity for Bangladesh to enhance its business environment to attract more private investment.
“We must improve our business climate, or the private sector will shy away,” he cautioned.
High Commissioner Cooke described the conversation as productive, affirming that the UK and Bangladesh share strong economic, trade, and investment relations.
“We are eager to expand our trade and investment ties. We also discussed how the UK can support the economic reforms Bangladesh is prioritizing, and how we can collaborate by bringing our experts together to address these reforms while also boosting our trade and investment relations,” she said.
When asked about attracting more Foreign Direct Investment (FDI) from the UK, Cooke noted the strong partnership between the two countries.
“We have a robust investment environment. Naturally, we would like to see more FDI in Bangladesh,” she added.
She emphasized that British investors are committed to responsible investment, adding, “I spoke with the adviser about ways to build investor confidence and further strengthen our trade and investment ties.”
Addressing another question, Cooke confirmed that the discussion included how the UK could support Bangladesh in prioritizing its economic reforms.
The Kazipara and Mirpur-10 metro stations, which have been closed, are expected to reopen by the end of September, though the exact date has not yet been confirmed. Mohammad Abdur Rauf, Managing Director of Dhaka Mass Transit Company Limited (DMTCL), told TBS that a technical team has been tasked with resolving the issues at the stations.
“We are working to reopen the two stations within this month, but I cannot give a specific launch date yet. We will hold a meeting with the technical team and other stakeholders soon to review the progress. A decision is likely on 18 September,” Rauf said.
He noted that Kazipara station is likely to open earlier due to less severe damage, while Mirpur-10 may face delays as it requires machinery that needs to be imported.
Additionally, Rauf mentioned plans to begin metro rail operations on Fridays starting from 20 September, with efforts being made to meet this timeline.
Dr. Muhammad Yunus, the Chief Adviser of the interim government, has announced the formation of six commissions as an initial step toward reforms, including constitutional amendments. These commissions are expected to begin operations on 1 October and complete their work within three months.
In an address to the nation on Wednesday evening (11 September) from the Chief Adviser’s Office, Yunus outlined the government’s reform agenda. This is his second national address since taking office on 8 August.
Yunus explained that the formation of the six commissions is the first step in a broader plan for constitutional reform. He stated that the commissions would be led by six distinguished citizens, selected based on their expertise. These commissions will tackle various reform areas, and more will be established in the future.
Emphasizing the importance of constitutional reforms for free and fair elections, Yunus stated, “We believe that imposing majority rule through elections, resulting in misgovernance or consolidating all power into the hands of one person, family, or group, is unacceptable. To prevent this, we are considering reforms to institutions like the Election Commission and others involved in the election process. Reforming the police administration, civil service, judiciary, and Anti-Corruption Commission is essential for ensuring fair and transparent elections. These reforms will also contribute to establishing a state system based on public ownership, accountability, and welfare.”
Yunus announced the names of the six commission heads:
- Dr. Badiul Alam Majumdar will lead the Election System Reform Commission.
- Sarfaraz Chowdhury will head the Police Administration Reform Commission.
- Justice Shah Abu Naeem Mominur Rahman will lead the Judiciary Reform Commission.
- Dr. Iftekharuzzaman will lead the Anti-Corruption Reform Commission.
- Abdul Muid Chowdhury will head the Public Administration Reform Commission.
- Dr. Shahdeen Malik will lead the Constitutional Reform Commission.
The Chief Adviser mentioned that the other members of these commissions would be determined in consultation with the heads. Additionally, representatives from the advisory council, students, workers, social movements, civil society, and political parties will participate in the commissions’ discussions.
Yunus expressed hope that the commissions would be fully operational by 1 October and complete their work within three months. Based on the commissions’ reports, the government plans to organize consultations with major political parties. A broad consultation, lasting three to seven days, involving students, civil society, political party representatives, and the government will follow. This consultation will finalize the reform framework and outline its implementation strategy.
Yunus concluded by stating that this initiative will unify the nation, fulfilling the demands of the July uprising and strengthening the country with renewed hope and optimism.
The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has urged the Bangladesh government to implement a more investment-friendly tax structure to enhance foreign investor confidence.
During a meeting on Wednesday (11 September) with the newly appointed chairman of the National Board of Revenue (NBR), Abdur Rahman Khan, FICCI leaders highlighted the need for comprehensive tax reforms that would position Bangladesh as a more attractive destination for foreign direct investment (FDI) and strengthen the national economy.
Zaved Akhtar, President of FICCI, stressed the significance of fully digitising NBR operations, particularly by advancing automation systems to maximise revenue collection, as outlined in the chamber’s press release.
The delegation also recommended the establishment of a dedicated research unit within the NBR to broaden the tax base and increase revenue through in-depth market analysis, identifying gaps between market share and revenue generation.
NBR Chairman Abdur Rahman Khan acknowledged the importance of automation in stimulating economic progress and welcomed FICCI’s research findings on the taxation landscape.
FICCI’s delegation included Senior Vice President Eric M. Walker, other board members, and senior officials from member companies, alongside key officials from the NBR.
