Economy
Algeria, Bangladesh Aim to Elevate Bilateral Cooperation
Algeria has underscored the imperative for intensified efforts to elevate bilateral cooperation with Bangladesh, emphasizing the significance of a concerted approach. In response, Bangladesh has emphasized the expansion of cooperation in emerging domains through a time-bound and targeted roadmap, along with the acceleration of pending agreements, MOUs, and new avenues for collaboration.
The Ministry of Foreign Affairs confirmed Algeria’s commitment to promptly concluding these agreements, signaling their dedication to fostering enhanced relations.
A courteous meeting unfolded between Laaziz Faid, the Minister of Finance and Head of the Algerian delegation to the BRICS Outreach Forum, and Bangladesh’s Foreign Minister Dr AK Abdul Momen in Johannesburg, South Africa. Acknowledging Bangladesh’s growing demand for energy due to economic expansion, Foreign Minister Momen underlined the importance of Algerian support to address the present energy crisis.
Furthermore, he expressed Bangladesh’s keen interest in procuring LNG from Algeria, demonstrating a strategic alignment between the nations.
Diverse bilateral matters of mutual concern were discussed between the Foreign Minister and the Algerian Finance Minister during this exchange. Reflecting on the historical ties between both countries, attributed to the pioneering efforts of Father of the Nation Bangabandhu Sheikh Mujibur Rahman, Foreign Minister Momen expressed contentment with the robust bilateral relations between Algeria and Bangladesh.
He highlighted the evolving collaboration across political, economic, business, trade, and investment sectors.
Underlining Bangladesh’s earnest aspiration to join the BRICS group, Foreign Minister Momen shared insights into the nation’s intentions. The Algerian Finance Minister referenced the NAM Summit of 1973, characterizing BRICS as a product of NAM’s ideals.
Both sides acknowledged that despite the existing strong relations, there remains significant untapped potential between the two nations.
Foreign Minister Momen urged the Algerian Finance Minister to expedite the completion of agreements concerning ‘Reciprocal Bilateral Promotion and Protection of Investment’ and ‘Avoidance of Double Taxation’. He provided an overview of Bangladesh’s socio-economic development and future prospects.
Stressing Bangladesh’s pharmaceutical exports to over 100 countries, Foreign Minister Momen suggested that Algeria could import high-quality pharmaceutical products at a reasonable cost. This suggestion also extended to the possibility of a joint venture in the pharmaceutical sector.
Additional areas of potential cooperation, including IT, ICT, defense, construction, edible oil, and agriculture, were proposed.
Both nations mutually agreed to schedule high-level visits in the coming year, further solidifying their commitment to collaborative growth.
The Algerian Finance Minister affirmed his intent to address these matters with the relevant stakeholders.
The meeting saw the presence of the Bangladesh Ambassador to Algeria, as well as officials from the Foreign Ministry, lending weight to the discussions.
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.
