Economy
Bangladesh Proposes Comprehensive Amendments to Travel Agreement with India
In a bid to enhance travel convenience and flexibility between Bangladesh and India, Bangladesh is set to propose substantial amendments to its existing travel agreement with India. The proposed changes, which aim to streamline the travel process, include issuing visas allowing travel through any checkpost and providing flexibility for long-term medical treatments, such as permitting multiple travels.
The current travel agreement, initiated on September 1, 1972, and last revised in January 2013, is set to expire on Sunday. In anticipation of its expiration, Bangladesh is presenting a comprehensive proposal for its renewal.
A senior official from the Ministry of Home Affairs anticipates the signing of the new travel agreement within the next month. To facilitate this process, Bangladesh’s Security Service Division has meticulously prepared a proposal.
An inter-ministerial meeting, scheduled for Sunday, will gather opinions and recommendations from relevant stakeholders, including the Ministry of Foreign Affairs, Ministry of Commerce, Ministry of Health and Family Welfare, Bangladesh Investment Development Authority (BIDA), Ministry of Information and Broadcasting, Ministry of Secondary and Higher Education, and the Ministry of Shipping.
Following the meeting, the finalized proposal will be sent to the Indian side through the Ministry of Foreign Affairs, initiating a mutual exchange of opinions before the agreement is renewed.
Key proposals in the amendment include replacing the term “Designated check post” with “Through any check post” in visa documentation to provide travelers with entry and exit flexibility. This change aims to alleviate congestion at specific checkposts and streamline the travel process.
The proposal also includes provisions for multiple travels and the option to change hospitals during long-term medical treatments, addressing the diverse needs of individuals seeking extended medical care in either country.
Bangladesh will propose increasing the visa-free stay period for diplomatic and official passports from 45 to 90 days, and other proposals include extending the validity of short-term double-entry visas and recognizing river routes as a legitimate travel option.
For stays exceeding six months, the current requirement for approval from the Foreigner Registration Office may be replaced with online registration for a Residential Permit 14 days before arrival.
Notably, there will be no changes to long-term multiple entry visas and long-term employment visas.
With these amendments, Bangladesh aims to foster a more seamless and convenient travel relationship, catering to the diverse needs of citizens from both countries. The proposed changes are expected to contribute to the substantial influx of Bangladeshi tourists visiting India each year for various purposes, including education, medical care, employment, business, and tourism. According to data from the Bureau of Immigration of India, Bangladesh was the second-highest contributor to India’s tourism sector in 2022, with 20% of tourists originating from Bangladesh.
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.
