Economy
IMF chief: PM Sheikh Hasina key to Bangladesh’s prosperity
During a meeting at The Ritz-Carlton hotel on April 29th, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, praised the leadership of Prime Minister Sheikh Hasina for transforming Bangladesh into a model of development that has managed to maintain economic stability even after the COVID-19 pandemic.
Georgieva was leading an IMF delegation at the meeting. She expressed her admiration for the impressive progress Bangladesh has made in various sectors under Hasina’s dynamic leadership. According to Georgieva, leaders like Hasina are necessary for achieving prosperity in the face of obstacles. She also highlighted Bangladesh’s success in maintaining macroeconomic stability during the pandemic.
Foreign Minister AK Abdul Momen stated that the IMF delegation led by Georgieva highly praised Bangladesh’s unprecedented advancement in various sectors, particularly in infrastructure development, widespread connectivity, and maintaining law and order. The IMF chief acknowledged that the development of Bangladesh was the result of long-term planning and initiatives taken by the government.
During the meeting, PM Hasina briefed the IMF chief on her government’s efforts to maintain the pace of overall development in the country, as well as steps taken to fight the adverse impact of climate change and ensure women’s empowerment. Bangladesh Bank Governor Abdur Rouf Talukder added that the IMF has supported Bangladesh in maintaining macroeconomic stability over the last 14 years, and that the IMF will continue to provide such cooperation in the future.
Bangladesh has received a $4.7 billion loan from the IMF, approved in January of this year, to be disbursed in seven installments over the next 42 months. The loan will be used to stabilize Bangladesh’s macroeconomy, implement necessary reforms to build capacity for social and development spending, strengthen the financial sector, modernize policy frameworks, and address climate change. The average interest on the loan will be 2.2%. So far, Bangladesh has received the first tranche of $476.2 million.
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.
