Finance Minister AHM Mustafa Kamal
Bangladesh's economy doing better to recover from Covid-19 shocks: WB Vice President
The World Bank’s Vice President for South Asia Hartwig Schafer has praised Bangladesh's recent success in recovering the economy from the adverse impact of Covid-19.
He said Bangladesh's economy is doing better than many other countries and the economy has turned around by tackling cowardice.
At the World Bank-IMF annual meeting 2021, Finance Minister AHM Mustafa Kamal requested to adopt a flagship project for Dhaka City aimed at facilitating communication as well as a more aesthetic city.
Read: WB delays decision to fund road safety project: Obaidul Quader
Responding to that he said good news regarding the proposal will be available soon as the World Bank sees it positively.
Kamal said that due to giving loans against the project as per the conventional rules, it is often seen that the projects are not ready and it takes a lot of time to prepare them slowing the pace. .
To overcome this slow pace, Kamal requested the World Bank to provide project loans in the form of budget support, then the government would be able to release funds for those projects which are ready on priority basis and the pace of projects would be accelerated.
A bilateral meeting between Kamal and Schaefer was held at a hotel in the capital on Sunday.
Senior Secretaries of the Internal Resources Department Abu Hena Md Rahmatul Muneem, Finance Division Abdur Raouf Talukder, Secretaries of Economic Relations Department Fatema Yasmin and Financial Institutions Department Sheikh Md. Salim Ullah, participated in the discussion as members of the Bangladesh delegation.
On the other hand, on behalf of the World Bank, Mercy Miyang Tembon, Country Director of the World Bank in Bangladesh; Zoubida Kherous Allaoua, Regional Director (South Asia) of the World Bank, Cecile Fruman, South Asia Regional Integration and Cooperation Officer participated in the meeting.
The finance minister narrated Bangldesh’s economic achievements in recent years.
"Our export earnings are growing at more than 24 per cent, foreign exchange reserves $45-46 billion; debt-to-GDP ratio is still below 40 per cent; inflation in Bangladesh is like all other countries in the world, has risen but is still below 6 per cent; The growth in revenue collection is about 17 per cent; Non-performing loans fell to 8.1 per cent; debt has increased by 9.5 per cent in the first quarter of the current financial year and interest rate on bank loans has come down to 7.3 percent,” Kamal said.
Read: WB lauds Bangladesh's economic growth despite downturn
He also urged the World Bank for quick release of $500 million to keep operative the labour market as well as social sector, as assistance program under the programmatic recovery and resilience development policy credit (DPC).
Schafer recommended that the project be more dynamic in each area of design, processing, approval and implementation.
To this end, he proposed to the Economic Relations Department, the Ministry / Department implementing the project and the World Bank to take initiative for timely implementation of the project.
He emphasized the need to expedite the implementation of the ongoing Recovery and Resilience DPC, Climate Change-related Policy Actions and the adoption and implementation of new projects in the field of Regional Integration and Cooperation.
Public Debt Bill lands in Parliament
The Public Debt Bill, 2021 was placed in Parliament on Tuesday to make the existing law a time-befitting one.
Finance Minister AHM Mustafa Kamal placed the Bill and it was sent to the respective scrutiny committee for further examination. The Committee was asked to submit its report within 15 days.
Read: Patents bill placed in Parliament
The Public Debt Act 1944 is a very old law, which was extended on several occasions.
The Bill said since the debt system witnessed a radical change, the Finance Division designed the new law.
According to the proposed law, the government will give a precise guarantee against the debt taken by the government from people that they would get back the deposited money anyhow.
A new provision was also incorporated in the draft law for running a Shariah-based deposit system alongside the normal deposit system.
Read: Parliament mourns death of 6 ex-MPs, others
The public would be informed about the profits or interest against their deposits.
If anyone does not provide false information in obtaining the issued certificates under the government security and saving certificate schemes, he or she would face maximum six-month imprisonment, Tk one lakh fine or both.
Govt rolls back Jhilmil Flyover project
The government has cancelled the Shantinagar to Dhaka-Mawa (Jhilmil) Flyover project taken under public-private partnership (PPP) as the ministry concerned took it off from the PP list.
The cabinet committee on economic affairs at a meeting on Wednesday approved a proposal of the Rajdhani Unnayak Kartipakkha (Rajuk) to cancel the project.
The Ministry of Housing and Public Works placed the cancellation proposal on behalf of Rujik.
Read:DMP commissioner for setting up traffic police boxes beneath flyovers
About the cancellation, Finance Minister AHM Mustafa Kamal, who presided over the cabinet body meeting, said the perspective of the previous decision to implement the project through PPP does not exist anymore.
He noted that the relevant ministry has withdrawn the project from the PPP list and they can now say how and when they would implement the project.
Earlier, the cabinet committee on economic affairs (CCEA) in principle approved the project on January 9, 2013 to implement under the PPP method while on June 6, 2018, the finance ministry approved the proposal for allocating Tk 534.72 crore as viability gas funding (VGF).”
Later, six firms submitted the Request for Quotation (RFQ) for implementing the project.
The cabinet body, however, approved in principle another proposal of the Road Transport and Highway Division to appoint Consortium of (1) China Communications Construction Company Ltd (CCCCL) and (2) China Road and Bridge Corporation (CRBC) as investor for implementing the Rampura-Amulia-Demra Highway project to upgrade it to a four-lane one under PPP.
Meanwhile, the cabinet committee on public purchase approved five procurement proposals.
As per one proposal, the Bangladesh Chemical Industries Corporation (BCIC) under the Industries Ministry will import a total of 90,000 metric tons (MT) of fertilizer from two companies through separate proposals.
Of these, 30,000 MT of bulk granular urea fertilizer will be imported from Saudi Basic Industries Corporation (SABIC) at Tk 206.31 crore at $778.67 each ton while another 30,000 MT of prilled urea will be bought from the same company at a cost of Tk 200.31 crore , at $802 each metric ton.
Another 30,000 MT of bagged granular urea will be procured from Karnaphuli Fertiliser Company (Kafco) at a cost of Tk 198.72 crore, at $767.50 each metric.
Read: Flyovers, underpasses construction to remain suspended for 14 days: Quader
The committee approved a proposal of the Bangladesh Power Development Board (BPDB) to procure spares and consumables parts for schedule maintenance of Gas Turbine and Gas Turbine Generator of the 4th unit of Ghorashal re-powered power plant from General Electric Global Parts and Products GmbH, Switzerland at Tk 301.98 crore.
A proposal of the Khulna Wasa received the approval of the committee to appoint the Joint Venture of (1) Dohwa Engineering Co. Ltd. Korea; (2) Dev Consultants Ltd (BAN); (3) Institute of Water Modeling (BAN); and (4) BETS Consulting Services Ltd. as consultant for Khulna Sewage Management System project at a cost of Tk 71.38 crore.
The committee approved a proposal of the Ministry of the Shipping extending the cost of the project titled: “Establishment of Global Maritime Distress and Safety System & Integrated Maritime Navigation System (EGIMNS)” by 104.9 crore.
Police receive final approval to procure 2 Russian helicopters
Bangladesh Police received the final approval from the cabinet committee on public purchase (CCPP) to procure two Russian helicopters.
The cabinet body at a meeting gave its nod to the proposal placed by the Ministry of Home Affairs.
Finance Minister AHM Mustafa Kamal presided over the meeting, attended by members of the cabinet committee.
On October 6, the cabinet committee on economic affairs (CCEA) gave in principle its approval to the proposal.
Read:Bangladesh Police to procure 2 Russian choppers
As per the proposal, the Bangladesh Police Directorate will procure the Russian Mi-171A2 model helicopters from Russian firm JSC Russian Helicopters under a G2G contract at a cost of Euro 42.60 million, equivalent to Tk 428.12 crore.
On February 10 this year, a memorandum of understanding (MoU) was signed between the Bangladesh Police and helicopter manufacturer JSC Russian Helicopters for the purchase of helicopters on a government-to-government (G2G) basis.
Inspector General of Police (IGP) Benazir Ahmed and Director General of Russian Helicopters AI Boginsky signed the deal through a video conference call.
According to police headquarters, two advanced helicopters from Russia will be added to the Bangladesh Police fleet to enhance the efficiency and capability of the law enforcement force to ensure better public safety.
The addition of helicopters will enable the police to conduct key operations and increase surveillance in remote and inaccessible areas. It will also help the police in their fight against militancy and terrorism.
The cabinet purchase body also approved three proposals of the Bangladesh Chemical Industries Corporation (BCIC) to import urea in bulk.
Read:BGB to purchase 2 Russian helicopters
As per the proposals, the BCIC will procure 30,000 metric tons (MT) of bagged granular urea from Karnaphuli Fertiliser Company (Kafco) at a cost of Tk 185.85 crore while it will import another 30,000 MT of balk prilled urea from Muntajat, Qatar spending Tk 189.39 crore.
Another 30,000 MT will be imported by the BCIC from Saudi Basic Industries Corporation (SABIC) at a cost of Tk 190.25 crore.
Meanwhile, the cabinet committee on economic affairs approved in principle two proposals—one from Rajshahi Wasa under the LGRD Ministry and another from Bangladesh Hi-Tech Park Authority under the ICT Ministry.
As per the LGRD Ministry, the Rajshahi Wasa will appoint Joint Venture of (1) BRTC, BUET and (2) SMEC International Pty. Ltd. as consultant for its surface water treatment plant while the ICT Ministry will directly award contract to Bangladesh Diesel Plant Limited, an enterprise of Bangladesh Army, to construct 11 IT Training and Incubation centres in 11 districts.
Remittance inflow to become normal in 2-3 months: Finance Minister
Finance Minister AHM Mustafa Kamal has said he is expecting the country’s remittance inflow to become normal within two to three months.
“Hope, we’ll see an uptrend within two-three months as many of the expatriates who got stuck at home are going back to work following the improvement in the Covid-19 situation,” he told reporters on Wednesday after a meeting of the cabinet committee on public purchase.
Read: Remittances hit record high in April ahead of Eid
The finance minister’s remarks came against the backdrop of the consecutive fall in inward remittances of the country.
As per the Bangladesh Bank’s statistics, the country received $1871.49 million in July, $1810.10 million in August and $1726.29 in million in September this year.
After the fall in remittance earnings, many analysts apprehend if the downward trend continues, the country’s foreign exchange reserve may witness a decline.
Read: Remittance, investment promotion campaign held in US
Mustafa Kamal said Bangladesh has been witnessing continuous rise in remittance inflow as a result of the various measures, including 2 percent incentives given by the government to wage earners.
He said the slight fall in remittance inflow is temporary and it will return to normalcy within two months as Bangladesh has long been receiving remittances of $22-23 billion annually.
Bangladesh’s per capita foreign debt now stands at Tk 24,890
Finance Minister AHM Mustafa Kamal on Wednesday said the per capita foreign debt of Bangladesh citizens is now Tk 24,890.
The minister revealed this information in parliament while replying to a tabled question from Awami League MP Didarul Alam from Chittagong-4.
The finance minister said the current foreign debt now stands at US dollar 49,458 million.
According to the Bureau of Statistics, the total population of the country is 169.31 million. And, in that context, the per capita foreign debt is now 292.11 dollars. If one dollar is equivalent to Tk 85.21, it stands at Tk 24,890, the minister said.
Replying to another query from Didarul Alam, he said the amount of loan agreements with various development partner countries and institutions as of June 30 is $ 95,908.34 million.
Of the total amount, $59,458 million have been disbursed while $46,450.34 million are under the process of disbursement, he said.
BHBFC to have extended areas of services; Bill lands in JS
The House Building Finance Corporation Bill (Amendment) 2021 was placed in Parliament on Monday to increase the authorised and paid-up capitals, and expand its areas of providing services.
Finance Minister AHM Mustafa Kamal placed the Bill in the House and it was sent to the respective Parliamentary Standing Committee for further scrutiny. The Committee was asked to submit its report within a month.
Read:Updated Bankers’ Book Evidence coming, Bill placed
The original law was promulgated in 1973, during Bangabandhu’s rule, through issuing an order.
With the amendment, the authorised capital of the Bangladesh House Building Finance Corporation (BHBFC) will be Tk 1,000 crore while the paid-up capital Tk 500 crore.
The BHBFC, with the enhancement of these, will be able to provide more services, according to the objective of the Bill.
The proposed Bill is making punishment for providing false statements harsher while taking loans from the corporation.
Read:Bill placed in JS with provision of archiving all records
The punishment for providing false statements deliberately to take loan from the corporation has been proposed for a five-year jail term or Tk 500,000 fine or both raising that from a two-year jail term or Tk 2,000 fine or both.
If anyone uses the name of the corporation in any advertisement or prospectus without any written permission, he or she will be sentenced to six months' jail or be fined with Tk 50,000 or both.
The punishment was six months' jail or only Tk 1,000 fine in the existing Bangladesh House Building Finance Corporation Order 1973.
In the proposed Bill, some words, including 'loan default', 'chairman of the corporation', and 'director' have been incorporated.
Read: Cabinet approves draft Finance Company Bill
A superseding clause has been inserted in the bill to give it priority over other laws.
There will be a seven-member Board of Directors for three years while the Chairman and the Managing Director will be appointed by the government.
Updated Bankers’ Book Evidence coming, Bill placed
The Bankers’ Book Evidence Bill 2021, defining the digitally recorded documents as such evidence under the proposed law, was placed in Parliament on Monday.
Though there is already a law to deal with it, the draft of the new law was brought to incorporate digitally-recorded evidence in it.
Read:Bill placed in JS with provision of archiving all records
Finance Minister AHM Mustafa Kamal placed the Bill in the House and it was sent to the respective Parliamentary Standing Committee for further scrutiny. The Committee was asked to submit its report within one month.
The proposed law is going to replace the old Bankers’ Book Evidence Act 1891 as many things in the current law are not consistent with the present-day situation.
Besides, the banks are now working digitally which was not mentioned in the previous law and the draft law has stated it clearly.
Read: Cabinet approves draft Finance Company Bill
The proposed law has suggested making information public except those of private one after taking permission from the court and fixing the authorities who can do that.
The new law also states some offences, punishments and trial to prevent unauthorised and the behind-scene leak of any information.
The proposed law defines the jurisdiction of the court for any bank-related information, which is totally prohibited in the old one.
Read:40 collect AL nomination papers for JS by-elections
Some of the information have been opened up in the new law, axing the privileged and personal information, which will be authorised to publish the information.
Finance Minister dismisses the claim of 2.5 crore new poor
Finance Minister AHM Mustafa Kamal on Wednesday discounted a claim that the coronavirus pandemic has made up to 2.5 crore new poor in the country.
“I don’t believe that 2-2.5 crore people are now below the poverty line. I need to know from where some research organizations have collected the figure”, he told a reporter after attending a meeting of the Cabinet Committee on Public Purchase.
Read: ARTICLE 19 lauds tax exemption move for 3rd gender citizens in proposed budget
He said the government has its own research bodies and they are now working on it. “I will look into it when the government bodies complete their findings”.
He said no figure will be acceptable before the government’s own research bodies’ present their findings.
Read: JS passes Tk 13,987.27 cr supplementary budget
Defending the proposed national budget for fiscal 2021-22, the finance minister said his budget has no weak points.
Trashing the comments of some economists that the budget has failed to address the problems of corona-affected low income groups, he said everything in the budget is strong.
Read: New budget proposals inadequate in tackling poverty, say rights groups
“You will see the results of the budget that it would serve the interest of poor people when implementation starts”, he said.
He said he has followed the Prime Minister’s instruction to bring the poor people within the mainstream of the economy.
Zero tolerance for corruption in financial sector: Finance Minister
Finance Minister AHM Mustafa Kamal on Monday told Parliament that 15 laws will be enacted within the next one year as the government is pursuing a zero-tolerance policy against irregularities in the financial sector.
“I would like to assure you that you (MPs) will see 15 laws in this Parliament within the next 6-12 months to stop these irregularities,” Mustafa Kamal said.
The minister said while replying to a cut-motion placed by opposition MPs over allowing additional grant demand for the Finance Institution Division in the Supplementary Budget of 2020-21 Fiscal Year.
The finance minister said, “The syphoning off people’s hard-earned money hurts me like others. I’m always against any irregularity, disorder and corruption in any place under any circumstances. We all and our government want these to be stopped.”
He said there was a time when sand used to be imported in the name of cement and one product used to be brought in the name of another product. “Now under-invoicing and over-invoicing are hardly done. But I don’t say such things have stopped completely. We hardly see these things in the newspaper,” he added.
Read:ARTICLE 19 lauds tax exemption move for 3rd gender citizens in proposed budget
Kamal said he knows how such irregularities are committed but does not know who are doing these. “Once such things had happened due to inefficient systems and ineffective management. These things will have to be stopped completely.”
He said the government will frame new laws aiming to reform the systems in the financial sector. “We’ll enact new laws so that our banks and financial institutions can run their activities smoothly with responsibility. We’ll create the scope. I’m assuring you.”
The finance minister said there is a zero-tolerance policy against corruption as asked by the Prime Minister.
Pointing at the opposition MPs, he said, “If you know who siphon off money, please give us their names. Since you (MPs) are in Parliament, you also have the responsibility like us. If you do so, it’ll be easier for us to take action against them.”
Kamal said many of those who committed such irregularities are still in jail and face trial unlike in the past.
Replying to criticisms from the opposition lawmakers, the finance minister said the loan interest rate in scheduled banks came down to 7.3 percent from 12.3 percent in the last 12 years. There were 6,425 banks and their branches in Bangladesh in the 2005-06 fiscal year. Now the number has doubled.
Read: JS passes Tk 13,987.27 cr supplementary budget
He said banks have set up their branches in villages amid the growing demand of people and they are now getting services.
About default loans, Mustafa Kamal said the rate of default loans was 13.2 percent in 2006, which has come down to 8 percent now.