Economy
Bangladesh Eyes World Bank Backing to Export Electricity to Nepal
In a significant move, Nasrul Hamid, the State Minister for Power, Energy and Mineral Resources, has reached out to the World Bank for collaboration in constructing power transmission lines connecting Nepal and Bangladesh. The aim is to facilitate electricity export to Nepal during the winter months. During a meeting with Pankaj Gupta, the World Bank’s South Asia Infrastructure Regional Director, Hamid expressed his hope for the World Bank’s financial backing and consultancy services for this ambitious project. Hamid underscored the pivotal role the World Bank could play in broadening their cooperative efforts. The process of importing electricity from Nepal is reportedly in its final stages.
The discussions encompassed a range of mutually beneficial topics, such as Strategic Policy Dialogue, Future Engagement, and the Power and Energy Sector Portfolio. The import of electricity from Nepal and Bhutan, cross-border energy trade, electric mobility, renewable energy integration, as well as advancements in battery technology and energy security were key areas of focus.
The World Bank’s South Asia Regional Director conveyed the institution’s keen interest in collaborating with Bangladesh on diverse projects. He highlighted the bank’s willingness to fund initiatives related to energy security, renewable energy, energy efficiency, and the involvement of private entities in financing and participation. The urgent need to accelerate the gas metering project also received emphasis.
Hamid placed particular emphasis on the ongoing and upcoming projects backed by the World Bank. Notably, he shared details about the establishment of a power hub in Bangladesh’s southern region, outlining the requisite funding for transmission infrastructure and the preparation of smart grids. Additionally, he informed about the completion of wind mapping and the approval for generating around 10,000 MW of renewable energy. Investments in these sectors were highlighted as critical.
Furthermore, Hamid revealed a proactive initiative to replace antiquated gas pipelines with modern counterparts. The meeting saw the participation of key figures including Janendra Nath Sarkar, Chairman of Petrobangla, Humayun Kabir, Additional Secretary of Energy and Mineral Resources Division, Nurul Alam, Additional Secretary of Power Division, as well as World Bank representatives including Energy Practice Manager Simon J. Stolp and Operations Manager Gayle Martin. The outcome of this meeting signals a promising trajectory for collaborative efforts between Bangladesh and the World Bank in shaping the region’s energy landscape.
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.
