Economy
PM Sheikh Hasina Invites Bhutan to Establish Economic Zone
BAngladesh Prime Minister Sheikh Hasina has extended an invitation to Bhutan, offering the opportunity to establish an economic zone within Bangladesh for the benefit of both countries.
During a meeting between Bangladesh Prime Minister Sheikh Hasina and Bhutanese King Jigme Khesar Namgyel Wangchuck and Queen Jetsun Pema, held at the Claridge Hotel in the UK, PM proposed the creation of the “Bhutan Economic Zone” in Bangladesh. Welcoming the Bhutanese royal couple upon their arrival, Prime Minister Sheikh Hasina, accompanied by her sister Sheikh Rehana, expressed her willingness to facilitate the establishment of the economic zone.
Foreign Minister AK Abdul Momen later briefed reporters on the 50-minute meeting, where the PM informed King Jigme Khesar Namgyel Wangchuck that Bangladesh had already allocated economic zones to India, Japan, and South Korea. In response to the Bhutanese king’s desire to develop an administrative economic zone in Bhutan while prioritizing environmental preservation, PM suggested Kurigram as a potential location for the proposed economic zone.
Highlighting Bangladesh’s commitment to fostering communication and connectivity with neighbouring nations, Prime Minister Sheikh Hasina emphasized that Bangladesh serves as a vital hub, offering Bhutan access to two ports and the Syedpur International Airport.
Foreign Minister Momen revealed that the Bhutanese royal couple highly praised Bangladesh’s remarkable economic progress under the dynamic leadership of Prime Minister Sheikh Hasina. During the meeting, King Jigme Khesar Namgyel Wangchuck expressed his aspiration for direct transit routes through both Bangladesh and India. In response, Prime Minister Hasina expressed her willingness to engage in discussions with India, if necessary, to facilitate Bhutan’s transit requirements.
The Bhutanese monarch also highlighted the special bond between Bhutan and Bangladesh, as the Prime Minister and Foreign Minister of Bhutan had both studied in Bangladesh. The king expressed a desire for private visits to Bangladesh, which Prime Minister Hasina warmly welcomed, assuring them of her open-door policy.
The meeting also provided an opportunity to discuss personal and family matters, as the Bhutanese king and queen consider Prime Minister Hasina their maternal aunt. Notable attendees at the meeting included Prime Minister’s Private Industry and Investment Adviser Salman Fazlur Rahman, State Minister for Foreign Affairs Md Shahriar Alam, Prime Minister’s Principal Secretary Md Tofazzel Hossain Miah, Foreign Secretary Masud Bin Momen, Prime Minister’s Speechwriter M Nazrul Islam, and Bangladesh High Commissioner to the UK Saida Muna Tasneem.
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.
