Economy
WB Executive Cites Developing Nations to Follow Bangladesh’s Development Trajectory
During a courtesy visit with Prime Minister Sheikh Hasina at her official Ganabhaban residence in Dhaka, World Bank (WB) Executive Director Parameswaran Iyer expressed that developing nations could find value in emulating Bangladesh’s development approach.
He commended the country’s remarkable progress, citing Prime Minister Sheikh Hasina’s strategic leadership and meticulous plans. Iyer conveyed his sentiment during a subsequent media briefing, highlighting that Bangladesh’s model could serve as an exemplar for other developing nations.
The Prime Minister shared insights with the WB official about her administration’s comprehensive uplift programs, aimed at fostering holistic development across Bangladesh. She underscored the transformative strides achieved through methodical planning and execution under her government’s guidance, particularly emphasizing poverty alleviation and improved quality of life for all citizens.
Acknowledging the enduring challenges posed by climate change, Prime Minister Sheikh Hasina noted Bangladesh’s resilience despite not being a significant carbon emitter. In response, Iyer pledged the World Bank’s commitment to assisting Bangladesh in implementing its Delta Plan-2100, recognizing the country’s vulnerability to environmental shifts.
Appreciating Bangladesh’s sanitation system, Iyer lauded it as remarkable. He also praised the vibrant role of the private sector in the nation’s development, characterizing it as thriving. Prime Minister Hasina affirmed her government’s dedication to fostering private sector growth, emphasizing their open-door policy and unwavering support for private enterprise.
In addition to the WB Executive Director and the Prime Minister, the meeting included the presence of Alternative Executive Director of the WB Dr. Ahmad Kaikaus, Prime Minister’s Office (PMO) Secretary Mohammad Salahuddin, and Economic Relations Division Secretary Sharifa Khan, among others.
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.
