Economy
Commerce Secy Calls for Int. Assistance in Boosting FDI for Bangladesh
Senior Commerce Secretary Tapan Kanti Ghosh urged international partners, including the World Bank, to assist Bangladesh in achieving its target for foreign direct investment (FDI).
Speaking at the closing ceremony of the Export Readiness Fund, Ghosh highlighted the vital role FDI plays in achieving export diversification. However, he expressed concern that the current rate of FDI inflow falls short of the country’s requirements. The Export Readiness Fund, part of the Export Competitiveness for Jobs Project, demonstrated how Bangladesh can broaden its exports beyond the dominant ready-made garment sector.
The dilemma of diversifying exports beyond RMG persists, despite the country’s duty-free market access in developed nations, excluding the United States. Ghosh emphasized the need to break this deadlock for the nation’s economic growth. Launched in January 2020, the $17.5 million Export Readiness Fund, a World Bank financial grant initiative, aimed to enhance factory compliance and competitiveness in four targeted export sectors: leather and leather goods, footwear, plastics, and light engineering products. A total of 570 enterprises in these sectors received financial and technical support.
The commerce secretary acknowledged domestic success in various manufacturing sectors but highlighted challenges in gaining a foothold in the global market. Despite duty-free market access, compliance with global environmental, social, and governance standards is essential for export diversification. During the event, industry leaders stressed the impact of the recent global economic slowdown, emphasizing the need for support for small and medium enterprises (SMEs) to recover.
Souleymane Coulibaly, the lead country economist of the World Bank, affirmed the bank’s commitment to enhancing Bangladesh’s SME sectors’ competitiveness for further economic growth. Project leaders and World Bank Group representatives, including Md Monsurul Alam, Dave Runganaikaloo, and Hosna Ferdous Sumi, reiterated their dedication to supporting Bangladesh’s export competitiveness.
Chief Adviser Prof Muhammad Yunus on Thursday paid tribute to the Armed Forces Division by placing a floral wreath at its headquarters.
Prof Yunus, who visited the division as part of his official duties, laid the wreath to honor the sacrifices and dedication of the members of the Armed Forces.
Following the wreath-laying ceremony, he signed the visitor’s book.
Chief Election Commissioner (CEC) Kazi Habibul Awal, along with four other election commissioners, announced their resignation during a press conference today at the Election Commission (EC) building. The resignation follows growing speculation and pressure.
CEC Awal stated, “In this changed situation, I and other commissioners have decided to step down. We’re handing over our resignation letters to the EC Secretary to send it to the President.” After submitting the letters, the CEC and some commissioners quickly left the premises, with no clear explanation for the absence of two election commissioners.
The resignations come amid increasing unrest tied to the registration of political parties such as Nagarik Oikya and Gono Odhikar Parishad. Sources revealed the CEC felt unsafe due to aggressive behavior from activists, prompting the decision to step down.
Protesters outside the EC building hurled shoes at vehicles carrying Election Commissioners Rashida Sultana, Md Alamgir, and Anisur Rahman as they left. Meanwhile, preparations for their exit had already been underway, with the commissioners reportedly relocating personal belongings from their offices.
The commission, appointed in February 2022 for a five-year term, had previously expressed confusion over demands for their resignation, maintaining they had conducted fair elections. However, internal discussions led to the collective decision to resign earlier than expected.
The government will now purchase LNG from the international spot market through open tender instead of negotiation.
Cabinet Committee on Economic Affairs (CCEA) in a meeting on Wednesday in principle approved a proposal in this regard.
Adviser of the interim government for Finance Dr. Salehuddin Ahmed, who presided over the meeting, said that the government will procure LNG through open tender.
The Energy and Mineral Division of the Ministry of Power, Energy and Mineral Resources placed the proposal where it sought approval to import LNG from 23 listed companies in the international spot market.
The adviser said that though such 23 companies were enlisted by the previous Awami League government and signed Master Sales and Purchase Agreement, they will remain unchanged.
He said that instead of applying the Speedy Increase of Energy and Power Supply (Special) Act 2010, the interim government will follow the Public Procurement Rules 2008 to ensure the competitive bidding process.
“We don’t want to change them as we wanted to import LNG quickly, ensuring proper competition among the suppliers,” he told reporters.
Committee also approved another proposal in principle to sign a contract to import urea fertiliser for the 2024-25 fiscal year from Fertiglobe Distribution Limited, UAE, on a G-to-G basis.
Meanwhile, the Cabinet Committee on Government Procurement (CCGP) in a meeting, presided over by the Adviser for Finance, approved 3 proposals for import of lentil and fertiliser.
As per the proposal, the Trading Corporation of Bangladesh will procure 10,000 metric tons (MT) of lentil from local firm Sahara Enterprise at a cost of Tk 98.20 crore with each kg priced at Tk 98.20.
The Commerce Ministry which moved the proposal on behalf of the TCB in the meeting mentioned in the proposal that the supplier firm was selected through open tender.
The CCGP approved two separate proposals of the Industries Ministry under which Bangladesh Chemical Industries Corporation will import 30,000 MT of bulk granular urea fertiliser from Fertiglobe Distribution Limited, UAE, under state to state contract at a cost of Tk 121.48 crore.
Each metric ton of fertiliser will cost $343.17.
Another 30,000 MT of bagged granular urea fertiliser will be procured from the local Karnaphuli Fertilizer Company Limited (Kafco) at a cost of Tk 116.99 crore with each metric ton costing $330.50.
