Economy
Finance Minister: IMF admires BD’s progress as outstanding
Finance Minister AHM Mustafa Kamal said, The International Monetary Fund (IMF) admires Bangladesh’s “outstanding achievement” during its visit to Dhaka in late October.
IMF team said the progress and achievement of Bangladesh are excellent, the minister briefed while addressing the award giving event of the highest VAT payers at Hotel Intercontinental in Dhaka Saturday (10 December).
The National Board of Revenue (NBR) organized the event marking the 12th National VAT Day-2022 and the Vat Week from 10-15 December.
In the event, the finance minister presented certificates and awards to the 9 organizations that paid the highest VAT in the production, business & service sectors at the national level.
FBCCI President Jasim Uddin attended the event presided over by NBR Chairman Abu Hena Rahmatul Muneem.
Finance Minister AHM Mustafa Kamal highlighted, “We started with a GDP size of $100 billion 14 years ago. Now the economy has quadrupled to $465 billion. Similarly, per capita income increased from $686 to $2,864,” highlighted the finance minister.
Addressing taxpayers’ role in the economy, he said, “The country came to this position because of the contribution taxpayers kept.”
He said, “Our goal is to move from a middle-income country to an upper-middle-income country by 2030 and a developed one in 2041. To achieve this goal, taxes must be paid.”
Calling upon people to pay tax, AHM Mustafa Kamal said, “If you don’t pay taxes it is not possible to work for the backward people.”
The finance minister also urged suggestions from businessmen in regard to digitizing the VAT collection system.
In fiscal 2021-2022, Tk3,01,633 crore of revenue has been collected, NBR member Zakia Sultana said.
Of the amount, about 65 percent to 67 percent of revenue is derived from indirect taxes (VAT and customs) with the VAT sector contributing the rest, the NBR official added.
The highest VAT payers from the production sector are: Olympic Industries Limited (Kanchpur, Narayanganj), IBN SINA Pharmaceutical Industry Ltd (Shafipur, Gazipur) and SMC Enterprise Limited (Banani, Dhaka).
In the business category, Walton Plaza (Chandna, Gazipur), Agora Ltd (formerly Rahimafrooz Superstores Ltd) (Mohakhali, Dhaka), and Unimart Ltd (Gulshan, Dhaka) have become the top VAT-payers for the year.
bKash Limited (Jahangir Gate, Dhaka Cantonment), International Finance Investment and Commerce Bank Limited (Purana Paltan, Dhaka), and Nagad Ltd (formerly Third Wave Technologies Ltd) (Banani, Dhaka) will get the award in the service category.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
