Economy
Envoy says China, a trustworthy neighbor to Bangladesh
Bangladesh on Friday (8 September) reaffirmed its strong and enduring partnership with China, describing China as a dependable neighbor, close friend, and collaborative ally in Bangladesh’s path to modernization. This declaration was made during the inauguration of the “Belt and Road Initiative in Bangladesh Exhibition 2023” in the city, where the Chinese envoy delivered a keynote address emphasizing the commitment to bolster economic and trade relations between China and Bangladesh.
The envoy expressed optimism that, under the Belt and Road Initiative, the relationship between the two nations would ascend to new heights and usher in a fresh era of friendly collaboration. Notably, this year marks the 10th anniversary of the Belt and Road Initiative, with Bangladesh having been the first South Asian country to join this initiative.
The Chinese envoy extended gratitude to the Bangladesh China Chamber of Commerce and Industry and the Chinese Enterprise Association for orchestrating this event. He underscored the significance of this exhibition, which vividly showcases the achievements of the Belt and Road Initiative in Bangladesh, serving as a platform for cooperation between Chinese and Bangladeshi enterprises. Moreover, this exhibition is a gesture commemorating the 74th anniversary of the Founding of the People’s Republic of China.
The “Belt and Road Initiative in Bangladesh Exhibition 2023” is a premium exhibition that features leading companies from both China and Bangladesh. It is scheduled from September 8th to 10th, 2023, at the Bangabandhu Bangladesh – China Friendship Exhibition Center in Purbachal, running from 10:30 AM to 7:00 PM. The event is a collaborative effort involving the Embassy of China in Bangladesh, the Bangladesh China Chamber of Commerce and Industry (BCCCI), and the Chinese Enterprise Association (CEAB).
The exhibition encompasses various activities, including seminars, workshops with government departments, forums for dialogue between Chinese and Bangladeshi businesses, job fairs, and business meetings. Among the exhibitors are 15 Chinese companies with their South Asian regional headquarters in Bangladesh, nearly 20 other prominent Chinese companies actively operating in the Bangladesh market, and several prominent Bangladeshi companies and banks.
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.
