Economy
PM Offers Use of Payra Port to Nepal, Vows to Boost Regional Connectivity
In a bilateral meeting held at the newly inaugurated Bangladesh-Bangabandhu Sheikh Mujib Room in the FAO Headquarters during the UN Food Systems Summit in Rome, Prime Minister Sheikh Hasina extended a generous offer to her Nepalese counterpart, Pushpa Kamal Dahal. During the meeting, which took place on Monday (July 24), PM Hasina expressed Bangladesh’s willingness to allow Nepal access to its recently constructed Payra port, in addition to the already available Chalna and Chittagong ports. Bangladesh Foreign Minister AK Abdul Momen confirmed the offer while addressing the press.
Highlighting Bangladesh’s commitment to regional development, PM Hasina emphasized the ongoing efforts to transform the Sayedpur airport into a pivotal regional hub, aimed at enhancing connectivity within the region. In response, the Nepalese premier commended the remarkable progress achieved by Bangladesh under PM Hasina’s successful leadership, acknowledging her as a prominent figure in the region.
Discussions also revolved around Nepal’s vast potential for hydroelectricity generation, a subject that deeply interests both nations. PM Hasina assured Nepal of Bangladesh’s intention to import renewable energy, particularly hydroelectricity, following the upcoming trilateral power trade involving Nepal, Bangladesh, and India, which is set to begin with a 40MW power transfer.
Touching upon the educational aspect of their bilateral relations, PM Dahal praised the significant number of Nepalese students pursuing their studies in Bangladesh, further strengthening the ties between the two countries.
The meeting exemplified the shared commitment of Bangladesh and Nepal to foster mutual growth and cooperation, laying the groundwork for a prosperous and interconnected region. With the offer of Payra port usage, Bangladesh seeks to bolster trade and transportation links, fostering stronger ties with its neighboring nation. As both leaders continue to engage in constructive dialogues, their efforts are poised to elevate the region’s economic prospects and facilitate a brighter future for their people.
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.
