Economy
Bangladesh, France Eye Strategic Partnership for Indo-Pacific Prosperity
Prime Minister Sheikh Hasina expressed her confidence that the bilateral relations between Bangladesh and France would evolve into a strategic partnership, fostering shared prosperity within the Indo-Pacific and beyond. She made this announcement during a banquet held in honor of French President Emmanuel Macron at the Hotel InterContinental in Dhaka. Prime Minister Hasina welcomed President Macron with a bouquet of flowers and was joined by her younger sister, Sheikh Rehana, at the event.
The Prime Minister highlighted the expansion of cooperation in strategic assets and advanced technologies as a significant development in their partnership. She emphasized the potential for their collaboration to address global challenges, including conflicts, climate change, and rising living costs.
Prime Minister Hasina noted that France had been a trusted development partner of Bangladesh since its independence, fostering a robust trade partnership with a focus on responsible business conduct. President Macron’s visit to Dhaka followed his participation in the G-20 Summit in New Delhi, India.
Sheikh Hasina expressed her pleasure and honor in hosting President Macron, recalling his warm hospitality during her visit to the Elysee Palace in November 2021. She extended a warm welcome on behalf of the people of Bangladesh, emphasizing the special place France holds in their hearts and imagination.
In a lighter moment, Prime Minister Hasina mentioned that they had arranged for President Macron to experience Bangladesh’s unique kacchi biriyani, celebrating the rich culinary, cultural, and linguistic heritage shared by both nations. She proposed a toast to his health with a local fruit juice made from Amra.
Furthermore, Prime Minister Hasina reflected on her father, Bangabandhu Sheikh Mujibur Rahman’s admiration for the French Revolution’s ideals of liberty, equality, and fraternity. She noted how these values were echoed in Bangabandhu’s historic speech of March 7, 1971, in which he called for independence and self-determination. She praised President Macron for his bold reforms in France and his pursuit of strategic autonomy, which aligns with Bangladesh’s foreign policy principle of “Friendship to all, malice towards none.”
The banquet featured a delightful menu, including smoked Hilsha with piazo, somosa, mulligatawny soup with artisanal bread and butter, mutton kacchi biryani, beef seekh kebab, chicken korma, sour aubergine, traditional luchi bread, and roasted lobster. Desserts included pathishapta pitha, sweet yogurt, rosogolla, and fresh fruit cuts, accompanied by a variety of beverages.
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.
