United News of Bangladesh

The Ministry of Finance has urged the public to remain alert about a fake video that has recently circulated on social media, allegedly using the image and likeness of Finance Adviser Dr Salehuddin Ahmed for promotional purposes. According to an official media statement issued on Sunday (November 16), a vested group has been using Dr Ahmed’s image and an artificially generated voice in a misleading video, which has been promoted on Facebook as part of an advertisement or campaign. The ministry clarified that neither the content nor the claims made in the video have any connection with the Finance Ministry or the Finance Adviser. Read more: Precautionary measures taken to ensure steady food supply: Salehuddin The preliminary assessment suggests that artificial intelligence (AI) technology was used to produce the video by integrating background visuals of Dr Ahmed along with a fabricated voice-over to mislead viewers. The ministry said such misleading content could cause significant public confusion and potentially undermine the social and state dignity of the Finance Adviser. Authorities have already taken necessary steps to have the video removed and to pursue legal measures regarding the matter. The public has been advised not to engage with or rely on unverified audio-visual material circulated online, especially those related to financial issues. The ministry also urged people to verify information before making any financial decisions and to refrain from sharing or promoting suspicious online content. Read more: Pay scale process involves multiple commissions, layers of approval: Salehuddin

The interim government has announced a special allowance for government employees with effect from July 1, according to a circular issued by the Finance Division under the Ministry of Finance on Tuesday. Under the new provision, employees in Grade-1 and above to Grade-9 will receive a 10 percent allowance, while those in Grade-10 to Grade-20 will get 15 percent. The allowance will be at least Tk 1,000 for in-service employees and Tk 500 for pensioners. The benefit will apply to civil government employees under the national pay scale, as well as personnel of autonomous and state-owned bodies, banks, insurance and financial institutions, Border Guard Bangladesh (BGB), and the police. Pensioners whose pensions have been reinstated will also be eligible. Finance Adviser Dr Salehuddin Ahmed proposed the increased allowance in the 2025-26 national budget, presented on Monday. Secretariat employees hold sit-in to demand special ration, allowances In his speech, he cited the absence of a revised pay structure since 2015 as the reason for introducing the measure. The much-discussed dearness allowance did not materialise in name, but the special allowance has been introduced as an alternative. "We are actively considering a dearness allowance," Salehuddin had earlier told reporters. "A committee has been tasked with this. There is a fair chance, but it may take time," he added. According to the circular, employees on post-retirement leave (PRL) will receive the special allowance based on the basic salary drawn before going on PRL. Pensioners receiving reinstated pensions will get the allowance on their current pension, in line with their grade. Good news for teachers; allowances to increase: Ex-Edu Adviser Retired employees who have already withdrawn their full pension as a one-time gratuity and are not yet eligible for reinstatement will not receive the special allowance. Employees on unpaid leave will also be excluded from the benefit.

Amid widespread criticism and social media uproar over his son’s purchase of a goat worth Tk 15 lakh before Eid-ul-Azha, Md Matiur Rahman, President of the National Board of Revenue’s (NBR) Customs, Excise, and VAT Appellate Tribunal, has been removed from his post and shifted to the Internal Resources Division of the Ministry of Finance. According to a media release signed by Mokima Begum, Deputy Secretary of the Finance Ministry, the decision to move Matiur from NBR will take effect soon. Read more: NBR brings back individual black money whitening opportunities in next budget Allegations of amassing illegal wealth surfaced after a video went viral showing Matiur’s son, Mushfiqur Rahman Ifat, buying a goat for Tk 15 lakh. Matiur has since faced severe criticism over claims of acquiring illegal wealth amounting to thousands of crores in Bangladesh, with alleged investments in Singapore, the United States, Canada, and the UAE. The Anti-Corruption Commission (ACC) has formed a committee to investigate these allegations.

An official of the Ministry of Finance on Thursday said that 24 banks have agreed to issue bonds worth Tk 5,665 crore to help the government pay money to the owners of private power plants. The government owes more than $2 billion or around Tk23000 crore to the private power plants as bills. Bangladesh should discuss issues related to trade benefits at WTO ministerial conf: speakers at a seminar The government is unable to pay the money because of the financial crisis. As a result, the power plants are not able to pay the money taken from banks as loan. Many of such loans provided to those power plants have been defaulted. To deal with the situation, bonds of Tk 12,000 crore will be issued against the loans taken by the power plants, an official said on condition of anonymity. Bangladesh is doing well in IMF terms: Finance Minister Already, 24 banks have agreed to issue bonds worth Tk 5,665 crore, the official said, confirming that an MoU agreement has been signed in this regard in the Ministry of Finance on February 6. A letter may be sent to the Bangladesh Bank from the Financial Institutions Division, Ministry of Finance for issuing bonds this week. Electricity demand may rise to about 17,500 MW in coming summer: Nasrul After that, the Bangladesh Bank will issue this bond in 3-4 working days, the official said.

In a significant move to stabilize its power sector, the Bangladesh government has secured Tk 2,062 crore through the issuance of special bonds. This initiative, aimed at clearing outstanding liabilities to private power plants, involves a collaboration with two prominent private banks: City Bank and Pubali Bank. A comprehensive agreement was inked on Wednesday at the Secretariat, marking a critical step in addressing the financial challenges faced by the power sector. As per this agreement, the government will issue bonds worth Tk 1,985 crore to City Bank and Tk 77.50 crore to Pubali Bank, as confirmed by the Ministry of Finance. Sources reveal that the government’s inability to disburse subsidy funds had left private power plants struggling to meet their financial obligations, leading some to the brink of insolvency. Read: Bangladesh's imports drop over 18% in first half of FY2023-24  To counter this crisis, the government’s issuance of special bonds comes with an 8 percent coupon rate, mirroring the repo rate set by Bangladesh Bank. Notably, any future fluctuations in the repo rate will correspondingly adjust the bond interest rate. At the term’s end, the government will settle the bank dues along with interest, subsequently reclaiming these bonds. Unlike typical 15–20 year bonds, these special bonds have a maximum tenure of 10 years, a move tailored to the urgent needs of the power sector. Key players in the power sector, including Summit Power, United Power, Confidence Power, Baraka, Kushiara, Doreen, and Akron Power, are among the beneficiaries of this initiative. The Finance Division also disclosed plans for phased agreements with other banks, including BRAC Bank and Bank Asia, to further address the sector’s liabilities. Read: To ensure good governance in banks, chairman should be from independent directors: Dr Atiur  Reflecting on the agreement’s significance, managing directors of several banks expressed optimism. While banks can leverage these bonds with Bangladesh Bank, it provides the government with crucial financial breathing space. This strategic financial maneuver stands as a testament to the government’s commitment to ensuring the stability and sustainability of Bangladesh’s power sector.

Bangladesh has recently approved payment of USD $318 million for payment to Russia in the Chinese currency of yuan for construction of the Rooppur nuclear power plant.  A meeting held recently between the Economic Relations Division and Russian officials decided that the payment will be made in yuan at a Chinese bank account, Uttam Kumar Karmkar, head of the European affairs of Economic Relations Division (ERD), Ministry of Finance confirmed  to UNB. He said that the decision was taken to use the Chinese currency yuan for debt repayment at a meeting of the ERD last Thursday. Read more: Rooppur Nuclear Power Plant project delayed by Russia-Ukraine War: Yeafesh Osman He said that although the decision has been taken to use Chinese currency to repay the loan, the transaction has not yet been completed. Payment details need to be clarified and resolved. Citing the diplomatic sensitivity of the matter, he declined to comment further. Dhaka's decision seems to have resolved the problem of making any payment to sanctions-hit Russia in the US dollar.  Read more: Return of Russian vessel carrying consignment for Rooppur won’t delay project work: Minister Last year, Western countries excluded Russia from the Society for Worldwide Interbank Financial Telecommunications, or SWIFT, one of the world's payment systems, due to its military invasion in Ukraine. The Rooppur nuclear power plant is being built in Bangladesh with a loan from Russia. But due to sanctions on Russia, it is not possible to pay in US dollars.  

The Ministry of Finance has released cash incentives of Tk1,000 crore for Bangladesh's export-oriented knitwear sector. The ministry took the decision 11 days after receiving an application of Bangladesh Knitwear Manufacturers and Exporters Association's (BKMEA) for financial support for payment of salary and Eid bonus ahead of Eid-ul-Fitr. Read: Bangladesh Bank has revolutionised digitalisation of financial sector: Dr Atiur The request for cash assistance was made to the government on March 30 in a letter signed by the BKMEA president AKM Salim Osman. The letter stated that if the financial assistance is not given, the export sector may be in extreme trouble over the payment of salary and bonus to the workers before Eid. Bangladesh Bank has been instructed by the Ministry of Finance and the Comptroller General of Accounts to clear the amount of cash assistance. Read More: Dip in US market fails to dent apparel sector's growth momentum.

A team of the International Monetary Fund (IMF) is due to arrive in Dhaka on April 25 to discuss the progress in the use of the first tranche of its US$4.7 billion loan programme for Bangladesh and the release of the second installment. The Ministry of Finance sources told UNB on Wednesday that during its April 25 to May 2 visit the mission will hold meetings with the officials of the Ministry of Finance's Finance Division, Financial Institutions Division, Economic Relations Division (ERD), Bangladesh Bank, and National Board of Revenue (NBR). IMF Asia and Pacific Division Head Rahul Anand will lead the team comprising three to four members, the ministry sources said speaking on condition of anonymity. Read More: World Bank spring meeting begins in Washington today, announcement on $50bn allocation to face global crisis likely Bangladesh received the first tranche of US$476.2 million of the $4.7 billion loan approved by the IMF on January 30. The entire amount of the loan will be paid in seven installments in three and a half years until 2026. As such there are six more installments left. A senior official of the ministry said the IMF usually reviews various aspects of compliance before disbursing each tranche. Accordingly, an IMF team will come next September to review the fulfillment of loan conditions before disbursing the second tranche. Read More: Following IMF advice BBS to calculate inflation on a new base year from March Usually before each budget announcement, an IMF mission comes to Dhaka to discuss budget assistance. Now that the loan programme is going on with them, besides the budget assistance, the issues of fulfilling the loan conditions will also come up for discussion, said the sources.

The financial institution division (FID), a wing of the Ministry of Finance is formulating 'The Employment, Promotion and Posting Policy-2023' for the appointment and promotion of senior officers of state-owned commercial banks of Bangladesh. A committee led by the finance minister will appoint and promote people to these posts based on the basis of 100 marks in 8 categories, a source of the ministry told UNB on Sunday. Apart from this, the candidates will be scrutinized before the appointment. A committee of 6 members will be formed, led by the finance minister. Read: Investors’ financial literacy must to boost capital market: Commerce Minister According to the sources, contractual recruitment and posting for a maximum of three years will be made for the posts of Managing Director (MD) and Chief Executive Officer (CEO) through selection from among the Managing Directors working in state-owned commercial banks, specialized banks, and financial institutions or through promotion from Deputy Managing Directors (DMDs). Sources of FID said recommendations will be made by the selection committee following the seniority, experience, report of the NSI and Anti-Corruption Commission, and the circular issued by Bangladesh Bank from time to time. Contractual appointments will be made to the posts of Managing Director and CEO with the recommendation of the committee with the approval of the Prime Minister. Read: Bangladesh earned $27.22b from exports in July-Dec amid new records A senior official of FID said apart from this, promotion, appointment, posting and inter-bank transfers to the post of Deputy Managing Director in specialized banks and financial institutions will be restricted to specialized banks and financial institutions. However, in the interest of the state, posting and inter-bank transfer can be made from among the deputy managing directors of state-owned commercial banks to the post of deputy managing directors in specialized banks and financial institutions. As per the policy, in the case of promotion, the candidates eligible for promotion-educational qualification mark 15, length of service in a bank or financial institution -5, banking diploma-5, professional degree-5, professional publications -5, employment record 5, annual confidential application -40 and interview -15), etc will be selected by the committee on the basis of their mark out of a total 100 marks. Read More: Govt to save Tk10,000 cr annually from importing edible oil: Agri Minister.

The Ministry of Finance on Tuesday said a team from the International Monetary Fund (IMF) will arrive in Bangladesh on October 26 to discuss the terms of a $4.5 billion loan to Bangladesh. The IMF team will stay in Dhaka for 10 days and will hold meetings with government officials of different offices, including Bangladesh Bank, and the Ministry of Finance. Meanwhile, the central bank governor Abdur Rouf Talukder said that he had received verbal assurance of getting the loan from the IMF during his recent Washington visit. Besides, the World Bank will provide another $1.0 billion separately as budgetary support for Bangladesh. However, the IMF is also expected to attach various conditions to the disbursement of the loans. Highlighting the overall situation of the economy, last July, Bangladesh wrote a letter to the IMF asking for a loan to maintain the balance of transactions and as budget support. Although the loan amount was not mentioned in the letter, sources said then that Bangladesh wanted a $4.5 billion loan as budget support.