Economy
PM Sheikh Hasina seeks BD-Qatar business forum for economic cooperation
Bangladesh Prime Minister Sheikh Hasina on Monday (6 March) called for forming of a joint trade and investment committee by the Bangladesh-Qatar governments.
PM said that a joint business forum would bring the two nations’ private sectors under a single platform for mutually beneficial economic alliance.
“Both nations need to reposition our ties based on a mutually beneficial economic cooperation,” she told the Doha Investment Summit titled “The Rise of Bengal Tiger: Potentials of Trade and Investment in Bangladesh” held at hotel St. Regis Doha.
The premier also invited a Qatari business delegation to visit Bangladesh soon and urged the non-resident Bangladeshis in Qatar to invest in Bangladesh, seeking their participation in the nation-building efforts.
She insisted that business people from Qatar look at certain thrust sectors in Bangladesh as her government remains open to investment proposals in the infrastructures and logistics sectors.
Sheikh Hasina particularly mentioned the scope for Qatari investment in the energy sector, including in renewable energy and said Bangladesh could benefit from Qatar’s expertise in offshore gas exploration and energy distribution systems.
Pointing out Bangladesh’s agricultural growth, she said it also creates scope for cooperation in agro-processing industries, with buy-back arrangements to Qatar.
In this context, PM pinned that the government has plans to set up 3 special tourism zones, where Qatar can engage in both real estate and hospitality sectors.
“Bangladesh aspires to have at least 10 Unicorns in ‘Smart Bangladesh,’ and its vibrant start-up scene is ready to draw Qatari investment,” she continued.
Additionally, Qatari investors can consider portfolio investment in Bangladesh, PM told, adding that Bangladesh Securities and Exchange Commission (BSEC) is working hard to further develop the capital markets (DSE & CSE: Dhaka Stock Exchange & Chittagong Stock Exchange).
“We’ve taken several steps to establish our bond market on a solid footing, and we are soon going to include derivative products in our capital markets,” she said.
Sheikh Hasina observed that disruptions in the international fuel market due to the war in Ukraine have pushed countries like Bangladesh into a hard spot.
“In order to meet our growing energy need, we are interested in increasing our LNG imports from Qatar,” she said, adding, “We also request Qatar to explore opportunities for further exports from Bangladesh.”
PM also said Bangladesh and Qatar are bound by strong brotherly ties and friendship, and the Bangladesh expatriate community here is an excellent bridge between the two peoples.
“I am pleased to see many Bangladesh nationals today along with the Qatari business representatives,” she added.
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.
