investment
Urgent monetary reform, single exchange rate regime critical to improve foreign exchange reserves and ease inflation: World Bank
Bangladesh's economy made a strong turnaround from the COVID-19 pandemic, but the post-pandemic recovery continues to be disrupted by high inflation, a persistent balance of payments deficit, financial sector vulnerabilities, and global economic uncertainty, says the World Bank in its twice-yearly update.
Released today, the latest Bangladesh Development Update says that urgent monetary reform and a single exchange rate regime will be critical to improve foreign exchange reserves and ease inflation. Greater exchange rate flexibility would help restore balance between demand and supply in the foreign exchange market.
“Bangladesh’s strong macroeconomic fundamentals have helped the country overcome many past challenges,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan.
“Faster and bolder fiscal, financial sector, and monetary reforms can help Bangladesh to maintain macroeconomic stability and reaccelerate growth,” he added.
Structural reforms will be key to diversify the economy and build resilience over the medium and long term, including measures to raise government revenues to support investments in infrastructure and human capital, said the global lending agency.
Persistent inflation eroded consumer purchasing power, while investment was dampened by tight liquidity conditions, rising interest rates, import restrictions, and increased input costs stemming from upward revisions in administered energy prices.
Foreign Minister for concluding PTA with Indonesia
Private sector credit growth slowed further in FY24, reflecting a broader slowdown in investment.
The non-performing loan (NPL) ratio in the banking sector remains high and understates banking sector stress due to lax definitions and reporting standards, forbearance measures, and weak regulatory enforcement.
The balance of payments deficit moderated over the first half of FY24 driven by a surplus in the current account.
The report’s companion piece, the latest South Asia Development Update — Jobs for Resilience, also released today, says that South Asia is expected to remain the fastest-growing region in the world for the next two years, with growth projected to be 6.0% in 2024 and 6.1% in 2025.
Growth in South Asia is expected to be driven mainly by robust growth in India and Bangladesh, and recoveries in Pakistan and Sri Lanka.
But this strong outlook is deceptive, says the report. For most countries, growth is still below pre-pandemic levels and is reliant on public spending.
Persistent structural challenges threaten to undermine sustained growth, hindering the region’s ability to create jobs and respond to climate shocks.
Private investment growth has slowed sharply in all South Asian countries and the region is not creating enough jobs to keep pace with its rapidly increasing working-age population.
“South Asia’s growth prospects remain bright in the short run, but fragile fiscal positions and increasing climate shocks are dark clouds on the horizon,” said Martin Raiser, World Bank Vice President for South Asia.
“To make growth more resilient, countries need to adopt policies to boost private investment and strengthen employment growth.”
Saima Wazed, Princess Dechen Yangzom Wangchuck launch Bhutanese version of Bangabandhu’s ‘Unfinished Memoirs’
South Asia’s working-age population growth has exceeded than that in other developing country regions.
The share of the employed working-age population has been declining since 2000 and is low.
In 2023, the employment ratio for South Asia was 59%, compared to 70% in other emerging markets and developing economy regions.
It is the only region where the share of working-age men who are employed fell over the past two decades, and the region with the lowest share of working-age women who are employed.
“South Asia is failing right now to fully capitalize on its demographic dividend. This is a missed opportunity,” said Franziska Ohnsorge, World Bank Chief Economist for South Asia.
“If the region employed as large a share of the working-age population as other emerging markets and developing economies, its output could be 16% higher.”
Read more: Money launderers destroying country's economy: Salma Islam
Visit by Qatar's Emir to strengthen cooperation in manpower, energy, and investment: Foreign Ministry
Bangladesh and Qatar want to expand the existing ties with broader cooperation in the areas of manpower, energy, trade and investment following the planned visit of Qatar’s Emir Sheikh Tamim bin Hamad Al Thani to Bangladesh next month.
The two countries are in discussion to finalise nearly a dozen of cooperation documents which will be signed during the visit, said a source at the Ministry of Foreign Affairs.
The two-day visit is likely to take place on April 21-22, he said.
The two sides are now working on the MoUs and agreements that will be signed after the Emir’s meeting with Prime Minister Sheikh Hasina.
Cease-fire talks with Israel and Hamas are expected to resume Sunday in Qatar
The Ministry of Foreign Affairs has already held an inter-ministerial meeting to discuss various aspects of the visit.
In March last year, Prime Minister Sheikh Hasina had a meeting with the Emir of Qatar Sheikh Tamim bin Hamad Al Thani on the sidelines of the United Nations Conference on Least Developed Countries (LDC5) in Doha.
She sought increased energy, particularly LNG, from Qatar to meet the energy demands.
The State of Qatar recognised Bangladesh as a sovereign State on March 4, 1974 following the 2nd OIC Summit held in February 1974.
Qatar assures support for Bangladesh's media sector development
Bangladesh opened its diplomatic mission in Doha on June 25, 1975. The State of Qatar reciprocated by opening its diplomatic mission in Dhaka in 1982.
Bilateral relations between Bangladesh and Qatar are based on mutual respect, shared values, common religious ground, shared culture, and tradition.
People-to-people contacts bolstered by more than four hundred thousand Bangladeshi workers who are highly appreciated as disciplined and hardworking is one of the dominant features of bilateral relations, according to the MoFA.
Bangladesh and Qatar consider each other as brotherly countries and important development partners in materialising Bangladesh’s Vision 2041 and Qatar’s vision 2030.
Read more: Bangladesh ambassador accredited to Hungary presents credentials to Hungarian president
Premortem Analysis: How to Anticipate Failure
We’ve all heard of postmortem. It’s usually associated with homicide which gives the word its grim aura. But what about premortem? Before getting into it, let’s think of the times you’ve failed in life. How many times have you thought that if you had done things differently, the outcome could’ve been different? It is something that applies to every sphere of life, be it personal, social, career, or business. That’s where premortem analysis comes in.
What is Premortem Analysis?
Growing up, we’ve all heard “Prevention is better than cure”. It essentially signifies that it is important to identify and consider potential failures before doing something as it reduces the chance of failure.
Premortem analysis is a strategic planning technique used to identify potential risks and pitfalls in a project, decision, or course of action before it is implemented. It is the opposite of postmortem analysis which works to understand what went wrong after the conclusion of a project.
Read more: What is Your Desired Salary? How to Answer Recruitment’s Trickiest Question
Ways to Anticipate Failure by Premortem Analysis
It's easy to look back and see what went wrong in the process. But the same isn’t true when it comes to anticipating failure. It requires rigorous work with precedence, potential scenarios, and alternatives to assess the risk level and ways to mitigate it.
To better illustrate the steps of premortem analysis, let us consider a retail company called Terry’s Grocery. Terry’s Grocery wants to open a new location in a new city. Here’s what an ideal premortem analysis of the store would look like.
Foreign Minister requests visiting Irish Minister to ease the visa process
Foreign Minister Hasan Mahmud has invited Irish investment in Bangladesh, particularly in agro-processing, pharmaceuticals and IT sectors.
He also thanked Ireland for hosting a few thousand Bangladeshis and requested the Irish Minister for Enterprise, Trade and Employment Simon Coveney to ease the visa process to enable more Bangladeshi students and IT professionals to pursue higher studies and work in Ireland.
The Foreign Minister thanked the Irish Minister for visiting Bangladesh to further strengthen Bangladesh-Ireland bilateral relations.
He suggested further enhancement of bilateral trade in goods and services through new initiatives and sought Ireland’s support for EU’s EBA trade preferences to Bangladesh until 2032 and GSP+ benefits beyond 2032.
Minister Simon Coveney met with the Foreign Minister at the Ministry of Foreign Affairs on March 18.
Foreign Minister requests visiting Irish Minister to ease the visa process
The Irish Minister congratulated the Foreign Minister on his new appointment.
Highly praising Bangladesh’s sustained high economic growth, he suggested exchange of visits of delegations with special focus on bilateral trade and collaboration in the areas of technology, pharmaceuticals and energy.
He also assured Irish support in favour of Bangladesh’s appeal for extension of EBA facilities until 2032 and GSP+ facilities beyond 2032.
Referring to the migrant-friendly policy of the Irish government, the Irish Minister welcomed more Bangladeshi students and professionals to Ireland.
The Irish Minister hoped for an early solution of the Rohingya crisis and added that an additional Euro 1.5 million humanitarian assistance would be provided to the Rohingyas in Bangladesh.
The two ministers shared their views on the war in Gaza and expressed deep concern over the killing of people, particularly women and children.
They agreed that the two-state solution can bring lasting peace in the region.
Earlier, the Irish Minister officially opened Ireland’s first Honorary Consulate in Dhaka, which is seen as an “important milestone” in the relations between Bangladesh and Ireland.
In its desire to further expand the bilateral relations with Dhaka, Ireland has recently appointed Cosmos Group Deputy Managing Director Masud Jamil Khan as its Honorary Consul in Bangladesh.
Ambassador of Ireland to India, Kevin Kelly, and Masud Jamil Khan, among others, were present during the opening ceremony.
The Irish Minister arrived in Dhaka on Sunday on a two-day official visit aimed at boosting bilateral trade and investment.
FM thanks Ireland for opening its Honorary Consulate in Dhaka
On the occasion of St Patrick’s Day, the National Day of Ireland and official opening of the Honorary Consulate of Ireland in Bangladesh, Masud Jamil Khan and Kate Khan hosted an Iftar-dinner at a Dhaka hotel on Monday.
The Irish Minister, Irish Ambassador to India, former Foreign Minister Dr AK Abdul Momen, diplomats stationed in Dhaka, senior officials at the Ministry of Foreign Affairs, business leaders and journalists were present at the event.
PM Hasina writes back to Biden
Prime Minister Sheikh Hasina has written back to US President Joe Biden.
Foreign Minister Hasan Mahmud handed over a copy of the letter to Special Assistant to the President and Senior Director for South Asia, US National Security Council (NSC), Eileen Laubacher on Sunday.
It is a response to the letter sent by the US President to the Bangladesh Prime Minister.
Bangladesh Ambassador to USA, Muhammad Imran, will hand over the original copy of the letter to White House.
The Foreign Minister has said that they want a new chapter of relations with Bangladesh.
“We want to begin a new chapter of relations with them,” he said, adding that the nations will benefit through strengthening the relations.
Eileen Laubacher led an inter-agency US delegation during her meeting with Foreign Minister Hasan at the Ministry of Foreign Affairs on Sunday.
Read: PM's daughter Putul thanks Joe Biden for 'warm hospitality'
The USAID’s Assistant Administrator of the Bureau for Asia Michael Schiffer, the US Department of States Deputy Assistant Secretary at the Bureau of South and Central Asian Affairs (SCA) Afreen Akhter, and CDA of the US Embassy in Dhaka Helen LaFave were present at the meeting.
Besides, Bangladesh Ambassador to the US Muhammad Imran and Director General of Foreign Ministry’s North America Wing Khandker Masudul Alam and other officials from the ministry were present.
The discussions centred around exploring new avenues to deepening the existing relationship. Economic cooperation, trade and investment, Rohingya humanitarian response, climate change, and energy were in focus during the meeting.
The Foreign Minister reiterated Bangladesh’s steadfast position in favour of peace and against any form of war.
He asked for US to use its leverage to achieve a permanent ceasefire in Gaza.
Read: PM Hasina greets new US President Joe Biden
Hasan also hoped for the Russia-Ukraine war to end.
The extradition of Bangabandhu’s self-confessed killer Rashed Chowdhury from the US was also discussed.
He also asked for the withdrawal of the US sanction on RAB.
Earlier, US President Joe Biden wrote to Prime Minister Sheikh Hasina expressing his willingness to work together to achieve Bangladesh’s economic goals. He also expressed willingness to partnering with Bangladesh on the shared vision for a free and open Indo-Pacific.
As the two countries embark on the next chapter of the US-Bangladesh partnership, Biden said he wants to convey the sincere desire of his administration to continue their work together on regional and global security, economic development, climate change and energy, global health, humanitarian support, especially for Rohingya refugees, and more.
Read more: Fakhrul showers praises on Joe Biden, Kamala Harris
“We have a long and successful history of working together to solve problems, and our strong people-to-people ties are the foundation of this relationship,” the US President wrote to PM Sheikh Hasina.
Top 10 Financial New Year Resolutions and Ways to Implement Them
At the dawn of another year, setting financial resolutions becomes crucial for a stable future. It can serve as a roadmap towards economic well-being, empowering individuals to manage money more effectively. Proper management of expenses aids in reducing debt, making savings, and creating new investment windows. Prioritising financial goals ensures a more organised and secure financial journey. Overall, it fosters the path towards achieving long-term aspirations. Let’s take a look at some practical resolutions to manage your finances in 2024.
Top 10 Financial New Year’s Resolutions and Ways to Fulfil Them
Creating a Budget and Sticking to It
Creating a proper budget is key to managing money smartly. Try using apps or spreadsheets to split your money between what you need, what you want to save, and what you can spend on non-essential or luxury things.
By keeping a close eye on your spending and sticking to your budget, you can avoid spending money on things you do not need. It helps you keep your expenses within your budget.
Read more: 10 Foods to Eat for Good Luck in New Year
Practising Mindful Spending
Being mindful about spending means making choices that align with your goals and it leads to a more stable financial future. It is very important to take a mindful approach to spending by thinking before you buy. Try to focus on what you truly need rather than what you want right now. You may consider if your purchase brings long-term benefits.
This way of spending helps you control your money better and keeps you on track to reach your financial aims.
Paying off Debts and Loans
One should make it a priority to clear off debts with high interest rates as they can weigh one down financially. For instance, credit card debt needs to be paid in due time to avoid fines. To repay big debts arranging money from savings or low-interest loans can be considered depending on the situation.
In the new year, one can prepare a repayment plan to settle all debts and get financial freedom.
Read more: 5 New Year Resolutions that are actually achievable
Building an Emergency Fund
Life can surprise us, so it is wise to have a safety net for unexpected costs. Try to stash away money for an emergency fund that can cover living expenses for three to six months if needed. You may look into FD or DPS packages offered by different banks or financial institutions. This practice can help you save more money while making sure you can access them easily.
Whenever you hit a milestone on your savings journey, take a moment to celebrate your progress towards your financial safety net.
If you want to beat China, come with basket of money and affordable proposals: Momen
Foreign Minister Dr AK Abdul Momen today (October 28, 2023) said other countries should also come up with baskets of money and affordable proposals, instead of intimidation and giving advice, if they want to beat China.
"If you want to beat China, you should come with basket of money and affordable proposals like the Chinese. Only advice does not satisfy us," he said while talking to reporters.
The foreign minister mentioned that he said this during both the recent US and Europe visits.
Salman F. Rahman, US Under Secretary Uzra Zeya acknowledge the only means to change govt is through elections
Earlier, he spoke at a seminar on “Navigating Challenges: Bangladesh’s Response to the Current Global Situation” at the Foreign Service Academy as the chief guest.
Diplomats World, a diplomatic magazine, hosted the seminar.
Describing Prime Minister Sheikh Hasina’s Europe visit as “very successful,” Momen said the European countries listened to Bangladesh and they are now coming up with funds.
He said the European leaders highly appreciated Bangladesh’s leadership and development.
"This is a great achievement for Bangladesh," he said.
Momen said many countries want to sell their products while trying to put pressure in the name of human rights and democracy.
He said Bangladesh does not want to purchase military equipment now as the priority is to ensure people's welfare.
US does not take a side on internal political matters: Spokesperson
The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions.
Together, they aim to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.
President of the European Commission Ursula von der Leyen together with Prime Minister Hasina on Wednesday launched the negotiations on a new Partnership and Cooperation Agreement to expand and develop the relationship between the EU and Bangladesh at the Global Gateway Forum.
USAID official highlights US support for Bangladesh’s economic development
On this occasion, the EU, the European Investment Bank (EIB) and Bangladesh signed agreements worth €400 million for renewable energy projects to contribute to a sustainable green transition of Bangladesh's power sector. It is also aimed at meeting the country's climate mitigation targets.
Five additional cooperation actions, worth €70 million, supporting education, decent work, green construction, e-governance and the prevention of gender-based violence were also launched.
President Ursula von der Leyen said: “The EU and Bangladesh have been reliable and trusted partners for 50 years. Now, we are taking this partnership even further, to reap the opportunities of the green transition under Global Gateway. The European Commission, the EIB and Bangladesh will join forces to support renewable energy and tackle climate change. This €400 million investment will make a difference for the people of Bangladesh and its economy.”
Bangladesh can support EU’s efforts to diversify production of pharmaceuticals, vaccines: PM tells EIB President
European Investment Bank (EIB) President Dr Werner Hoyer has appreciated the use of Euro 1 billion loan portfolio for Bangladesh since 2000 in areas of shared priorities.
He noted, in particular, progress in projects – under implementation – under water treatment and rail link upgradation.
Prime Minister Sheikh Hasina held a meeting with the EIB President recently at her hotel suite in Brussels.
The prime minister referred to the achievements made so far in ensuring safe water and sanitation for nearly 97 percent of the population in Bangladesh.
Also read: ‘Dear PM Hasina, 50th anniversary of EU-Bangladesh relations is the occasion to take our partnership to the next level’
She requested EIB to consider supporting river dredging, water conservation, and surface irrigation.
PM Hasina also mentioned the initiatives taken by her government to develop dual-track railway, to promote cost-effective passenger and container traffic.
She appreciated the interest of multilateral development banks in financing such impactful connectivity projects.
The EIB president referred to the loan package of Euro 250 million signed in 2021, said the Ministry of Foreign Affairs on Thursday (October 26, 2023).
He shared that the disbursement of the amount would commence soon for the purpose of health system strengthening.
Also read: PM leaves for Belgium Tuesday on a significant EU visit
The EIB president observed that Bangladesh was in an ideal situation to roll out vaccine production.
The prime minister informed him about the measures taken by the government to develop a vaccine production facility and a molecular testing laboratory.
She suggested that EIB extend support for necessary infrastructure development for these initiatives.
She reiterated that Bangladesh could support EU’s efforts to diversify production of pharmaceuticals, vaccines and medical equipment.
She also discussed possible support measures for combating dengue outbreaks, including through vaccines.
The EIB is the largest multilateral public bank in the world.
In 2022 it financed around Euro 10.8 billion in investments outside the European Union via EIB Global, the arm of the bank created that year for activities beyond Europe.
Since the beginning of its operations in Bangladesh in 2000, the EIB has supported six projects in the country and has invested more than Euro 670 million in water, transport and health projects.
Also read: PM Hasina asks EU to extend GSP+ facilities for 6yrs to graduating LDCs like Bangladesh
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Latest ADB report predicts a better year for Bangladesh in FY2024
Asian Development Bank (ADB) has projected Bangladesh’s gross domestic product (GDP) growth to be 6.5 percent in the fiscal year 2024, compared to an estimated growth of 6 percent in fiscal 2023.
The projection was made in the latest ADB report, ‘Asian Development Outlook (ADO) September 2023,’ released today.
The ADB in a press release said that the growth forecast reflects an improvement in domestic demand and better export growth due to economic recovery in the Eurozone.
ADB, Deutsche Bank ink risk sharing agreement to boost supply chain financing in Asia
The ADB also mentioned that inflation in Bangladesh is projected to ease from 9 percent in FY2023 to 6.6 percent in FY2024.
The current account deficit is expected to slightly narrow from 0.7 percent of GDP in FY2023 to 0.5 percent of GDP in FY2024 as remittance growth improves.
The main risk to this growth projection is a further deterioration in export growth if global demand is weaker than expected, the press release said.
Global trade finance gap expands to 2.5 trillion USD in 2022: ADB
ADB Country Director Edimon Ginting said that the government is managing relatively well against the external economic uncertainties, while advancing infrastructure development and critical reforms to improve the investment climate.
“These key structural reforms include to strengthen public financial management, enhance domestic resource mobilisation, improve logistics, and deepen financial sector, which are critical for private sector development, export diversification and productive job creation in the medium term,” he said.
ADB to provide Bangladesh $300 million loan to boost skills of labour force
He mentioned that continued high oil prices also provide a good incentive to accelerate reforms to expand domestic renewable energy supply and achieve the country’s climate change goals.
The ADO September 2023 states that moderate inflation and an increase in remittances will contribute to reviving private consumption, while the completion of a number of major government infrastructure projects will boost investment.
Private investment, however, may be dampened by the initial higher interest rates following the enhancement in the country’s monetary policy framework.
Inflation is expected to ease in FY2024 with some fall in global non-fuel commodity prices, expected higher agricultural production, and the initial tightening of monetary policy under the new framework.
FM Momen for strengthening trade, investment ties with African nations
Foreign Minister AK Abdul Momen has highlighted the imperative of tapping into unexplored trade opportunities between Bangladesh and African countries.
He attended at an interaction session held on Thursday at the Commonwealth Trade and Investment Forum Bangladesh 2023 in Dhaka.
Bangladesh sends humanitarian aid to flood-affected Libya
Momen underscored the critical need to establish robust trade and investment relations with African countries, particularly in key sectors such as pharmaceuticals, textiles, energy, blue economy and information and communication technology (ICT).
The session also shed light on Bangladesh's visionary 'Look Africa' policy, which represents a strategic commitment to bolster relations with African nations.
This outlines various areas of cooperation, including trade and the economy, education, IT and ICT, air and maritime connectivity, healthcare, contract farming, people-to-people contact and visa waivers for diplomatic and official passport holders. This multifaceted approach demonstrates Bangladesh's dedication to fostering deeper connections with the African continent.
CWEIC chairman applauds Bangladesh’s “incredible” economic success story
The foreign minister also stated that Bangladesh is one of the world's fastest-growing economies.
The country's focus on enhancing engagement with African nations aligns with its ambitious economic and social development trajectory, aimed at achieving Vision 2041 and creating a Smart Bangladesh.
He also highlighted that new African markets have opened doors for Bangladeshi enterprises, leading to diversification in export destinations.
Despite challenges, the potential for economic cooperation between Bangladesh and African nations remains promising, Momen said.
Devastation in Libya: Bangladesh PM expresses deep shock
He also stated that Bangladesh will welcome any election observers from African countries in our upcoming National Parliament Election scheduled to be held in early January 2024.
Ministers from several African countries, High level government delegates and business entities attended this event.