Finance Minister
Finance minister directs regulators to boost investment in stock market
Finance Minister AHM Mustafa Kamal at a meeting with Bangladesh Bank (BB) governor Fazle Kabir and other senior officials of the ministry asked them to work for boosting stock market investment.
He said the economy of Bangladesh stands on a strong base and growth position is very positive, but the unstable situation of the stock market is not acceptable.
Also read: Finance minister directs regulators to boost investment in stock market
Despite the Russia-Ukraine war and Covid-19 pandemic the economic growth of Bangladesh will continue, he said.
Kamal on Sunday gave several directives to the BB and Bangladesh Security and Exchange Commission (BSEC) for immediate implementation to boost the stock market
In order to attract capital in the market, state-owned investment institution ICB has been instructed to keep the bank's investment outside the investment limit or exposure limit of this institution in the capital market.
It has also been decided to double the size of the Tk150-crore funds given to the ICB for small investors, which had expired.
Also read:Finance minister hints at hard decisions due to Russia-Ukraine war
The finance minister asked for increased tenure of the funds along with doubling the funds’ size. The investments will be made from this fund from Monday, the finance ministry sources said.
Finance Secretary Abdur Rauf Talukder and Secretary of Financial Institutions Division Sheikh Mohammad Salim Ullah were also present at the meeting.
Finance minister hints at hard decisions due to Russia-Ukraine war
Finance Minister AHM Mustafa Kamal has said the government may take hard decisions unless the global vulnerabilities caused by Russia-Ukraine war are over.
“You have to take hard decisions when there are tough times”, he told reporters after a meeting of the Cabinet Committee on Public Purchase on Wednesday.
Also read: Govt yet to take any decision on subsidy or inflation management: Finance Minister
He said the prevailing global situation is not the same as before.
“We have to make a decision considering the overall situation of the world,” he said.
Clarifying his remark on hard decisions, the finance minister said: “It does not mean the wheel of the economy or our development will come to a standstill.”
He said the government may decide to temporarily stop importing luxury items. “But we can buy those items two months or six months later”.
His remarks came when his attention was drawn to the Bangladesh Bank’s recent decision on increasing LC margin for import of luxury items and the prime minister’s instruction for not taking new road construction projects.
The minister said implementations of the non-essential projects could be deferred, but not cancelled.
“We are restructuring such projects so that we can effectively manage the situation. Through our management our economy will receive further pace,” he said.
He also said that nobody can say when the Russia-Ukraine war will come to an end.
Also read: Import of luxury items to be controlled: Finance Minister
He said the Covid situation is over and now it has no negative impact on any country. Now only the impact of the Russia-Ukraine war is prevailing across the world. Everybody is sharing the pain.
Responding to a question on frequent foreign trips of the government officials he said the prime minister has already issued directives against such tours unless these are very exclusive or essential from a strategic point of view.
Asked about the projected GDP growth at 7.2 per cent and doubts expressed by some economists, the FM defended the government’s position.
“We have calculated the GDP in the conventional way and no new component was added to it. Even there is no change in the methodology of calculation and it maintained the consistency.
“If anybody has any doubt, let them consult”, he said adding, that the stakeholders, especially IMF or World Bank, differed with our figures.
Muhith’s dua mahfil Saturday
A Dua Mahfil for salvation of the departed soul of former Finance Minister Abul Maal Abdul Muhith will be held at Gulshan(Azad) mosque in the city on Saturday.
The dua mahfil will be held after Asr prayer, confirmed Muhith’s younger brother Foreign Minister AK Abdul Momen.
Also read:Tearful adieu to AMA Muhith
Momen also requested the relatives and well-wishers to join the prayer session.
Muhith was a language movement veteran and valiant freedom fighter. He was elected Member of Parliament from Sylhet-1 constituency.
He, as finance minister of the Awami League government, presented the budget in parliament for 10 years at a stretch.
It was during his tenure that the size of the budget expanded.
Also read: Muhith: A gifted economist who was a prolific writer!
Muhith passed away in the wee hours April 30 in Dhaka after a prolonged illness at age of 88. He was laid to rest in his family graveyard at Rainagar in Sylhet.
He left behind his wife Sabia Muhith, daughter Samina, sons Shahed and Samir, and many family members, friends and well-wishers.
Muhith’s body reaches Sylhet
The body of AMA Muhith, former Finance Minister, diplomat, Freedom Fighter and language veteran, reached Sylhet around 10 pm on Saturday where people were waiting to see one of the region's proudest sons for the last time.
Later, the body was taken to the city’s Hafiz Complex.
His body will be taken to the central Shaheed Minar in Sylhet on Sunday (May 1) at 12 noon where people from all walks of life will pay last respects to Muhith, one of the giants of Bangladesh's political arena whose role stretches through the entire history of independent Bangladesh.
His last namaz-e-janaza will be held at 2 pm at Sylhet Government Alia Madrasa ground.
After Janaza, he will be buried next to his parents at his family graveyard at Rayanagar in the city.
AMA Muhith, one of the country's longest-serving finance ministers, the only one who commanded the economy for 10 consecutive years, and the principal architect of the Awami League's era of development, breathed his last in the wee hours of Saturday.
Muhith’s first namaz-e-janaza was held around 10.45 am at Gulshan Azad Mosque in the city on Saturday.
Later, his body was taken to Central Shaheed Minar where people from all walks of life paid homage.
The second namaz-e-janaza of the Awami League advisory council member was held at Dhaka University central mosque after Zohr prayers on Saturday.
Muhith had been keeping unwell for quite some time. In July 2021, he tested positive for Covid-19, but fought that back. Then in March, he was hospitalised again as he became enfeebled in his old age.
Also read: Muhith: His footprints traverse the journey of Bangladesh
President Abdul Hamid and Prime Minister Sheikh Hasina, who entrusted him with authoring the Awami League's manifesto as the party charted its comeback ahead of the 2008 election, expressed deep shock and sorrow at the death of Muhith.
Architect of AL’s development era Muhith to be laid to rest in Sylhet Sunday
AMA Muhith, former Finance Minister, diplomat, Freedom Fighter and language veteran, will be laid to rest at his family graveyard in Sylhet after Zohr prayers on Sunday.
His body is scheduled to reach Sylhet on Saturday evening where people are waiting to see one of the region's proudest sons for the last time.
People from all walks of life will pay last respects to Muhith, one of the giants of Bangladesh's political arena whose role stretches through the entire history of independent Bangladesh, before his last namaz-e-janaza in Sylhet on Sunday.
One of the country's longest serving finance ministers, the only one who commanded the economy for 10 consecutive years, and the principal architect of the Awami League's era of development, breathed his last in the in the wee hours of Saturday.
Muhith’s first namaz-e-janaza was held around 10.45 am at Gulshan Azad Mosque in the city on Saturday.
Later, his body was taken to Central Shaheed Minar where people from all walks of life paid homage.
The second namaz-e-janaza of Awami League advisory council member was held at Dhaka University central mosque after Zohr prayers on Saturday.
Muhith had been keeping unwell for quite some time. In July 2021, he tested positive for Covid-19, but fought that back. Then in March, he was hospitalised again as he became enfeebled in his old age.
President Abdul Hamid and Prime Minister Sheikh Hasina, who entrusted him with authoring the Awami League's manifesto as the party charted its comeback ahead of the 2008 election, expressed deep shock and sorrow at the death of Muhith.
With the most influential portfolio in the cabinet, for ten years, his seat was reserved to the right of the prime minister at weekly cabinet meetings.
As the finance minister of the Awami League government, he presented the budget in parliament for 10 years at a stretch. He had also presented it in an earlier era, as finance secretary in the early days of the Ershad-led administration.
Muhith left his mark in the deliberate and strategic move towards expansionary fiscal policy, reflected in the burgeoning of the budget under his watch - from Tk 114,000 crore in 2009-10, the first under the newly elected AL government, to Tk 464,000 crore in his last, for the 2018-19 fiscal.
At first, his critics said he was overambitious with his budgets. His retort was that he would rather be that, than fall short on ambition.
Muhith retired from politics after serving as the finance minister of Sheikh Hasina's government from 2009 to 2018.
Condolences pour in for Muhith
President Abdul Hamid and Prime Minister Sheikh Hasina expressed deep shock and sorrow at the demise of Muhith.
In her condolence message, the PM said that despite being a member of the Civil Service of Pakistan, Muhith joined the first government of Bangladesh in 1971. At the time, he was posted in the Pakistan Embassy in the US.
“A successful economist and politician, this Independent Award winner will be remembered by all for his works,” Hasina said.
The PM prayed for the eternal salvation of the departed soul and expressed sympathy to the bereaved family.
Foreign Minister Momen too expressed deep shock at the death of his brother. In a condolence message, Momen prayed for the salvation of the departed soul and conveyed deep sympathy to the bereaved family members.
In a separate message, State Minister for Foreign Affairs Md Shahriar Alam also expressed deep shock and sorrow at the demise of Muhith.
Speaker of Jatiya Sangsad Shirin Sharmin Chaudhury and Finance Minister AHM Mustafa Kamal also expressed profound shock at the demise Muhith.
FBCCI president Md Jashim Uddin too expressed deep shock and sorrow at the demise of Muhith.
In a condolence message, the FBCCI chief said the nation will remember him for his unparalleled contribution to the economic development of Bangladesh.
READ: Muhith: His footprints traverse the journey of Bangladesh
Indian High Commission in Dhaka on Saturday conveyed sincere condolences to the family of late Muhith. As a civil servant, he played an instrumental role in the 1971 Liberation War, said the high commission.
The high commission described him as a prolific writer, accomplished economist and an astute politician. "May his soul rest in peace."
Birth and Early life
Muhith was born on 25 January 1934 in Dhopadighi, Sylhet.
He was the third child of Advocate Abu Ahmad Abdul Hafiz who was a leader of the Pakistan movement and the founder of the then Sylhet District Muslim League.
His mother Syed Shahar Banu Chowdhury was also active in politics and social work.
He secured first place in the intermediate examination in the province in 1951 from Sylhet MC College. Muhith stood first class first in BA in English Literature in 1954 from Dhaka University and passed his MA with credit from the same university in 1955.
During his service period, he studied at Oxford University from 1957-58 and received an MPA degree from Harvard University in 1964.
After joining Pakistan Civil Service in 1956, he served in different capacities in the government of East Pakistan, the central government of Pakistan, and then Bangladesh.
During his service as the chief and deputy secretary of the Pakistan Planning Commission, he made a report on the disparity between East and West Pakistan in 1966 and that was the first report submitted on that issue in the Pakistan National Assembly in fulfilment of the constitutional obligation.
Liberation War and Beyond
He was the counsellor (economic) at the Embassy of Pakistan in Washington DC, when he joined the Liberation War effort as the first in his station to defect for Bangladesh and inspired many others to join him later on.
After retiring early from government service in the early Eighties, he embarked on a decades-long career as a consultant on economic and development matters at the Ford Foundation, IFAD, UN, UNDP, ADB and World Bank.
Muhith was also a pioneer of the Bangladesh environment movement and was one of the founders as president of BAPA in 2000.
He joined Awami League in 2001 and was elected a member of parliament in 2009 from his home constituency in Sylhet, after an earlier foray with Gono Forum fizzled out without notable success.
Muhith was awarded the highest civil award Swadhinata Padak (Independence Award) in 2016 for his contribution to the Liberation War and devoted record of public service.
He was equally gifted as a writer and published 35 books on different subjects including Liberation War, economic development, history, public administration and political problems.
Momen mourns AMA Muhith's death
Foreign Minister AK Abdul Momen has expressed deep shock at the death of his brother Abul Maal Abdul Muhith, former finance minister and freedom fighter.
Muhith died in the early hours of Saturday after a prolonged illness at the age of 88.
In a condolence message, Momen prayed for the salvation of the departed soul and conveyed deep sympathy to the bereaved family members.
He fondly remembered Muhith's extraordinary personality, human qualities, patriotism and contribution to the welfare of the country and the people.
In a separate message, State Minister for Foreign Affairs Md Shahriar Alam also expressed his grief at the death of Muhith.
AMA Muhith: The architect of AL's era of development no more
One of the most formidable figures in the country’s political arena, one whose legacy still steers the country’s journey, and as the holder of the most important portfolio in the cabinet for 10 years at a stretch, the architect of the Bangladesh economy as it stands today, AMA Muhith, son of Sylhet, has passed away.
He – an economist, diplomat, freedom fighter and language veteran – passed away at a city hospital in the wee hours (12:56am) of Saturday, his brother Foreign Minister AK Abdul Momen told UNB.
Muhith, 88, had been keeping unwell for quite some time. In July 2021, he tested positive for Covid, but fought that back.
Then in March, he was hospitalised again as he became enfeebled in his old age.
Muhith's first janaza will be held at Gulshan Azad Mosque at 10:30am Saturday and the second at 11:30am at the Parliament premises, Momen said.
Afterwards, his body will be taken to Central Shaheed Minar at 2pm for public homage and after that to Sylhet for burial.
President Abdul Hamid and Prime Minister Sheikh Hasina expressed their grief at the death of Muhith.
Foreign Minister Momen Saturday expressed deep shock at the death of his brother.
In a condolence message, he prayed for the salvation of the departed soul and conveyed deep sympathy to the bereaved family members.
Momen fondly remembered Muhith's extraordinary personality, human qualities, patriotism and contribution to the welfare of the country and the people.
In a separate message, State Minister for Foreign Affairs Md Shahriar Alam also expressed his grief at the death of Muhith.
Muhith, as the finance minister of the Awami League government, presented the budget in the parliament for 10 years at a stretch.
It was during his tenure that the size of the budget expanded.
On January 6, 2009, Muhith took oath as the finance minister of Bangladesh.
He retired from politics after serving as the finance minister of Sheikh Hasina's government from 2009 to 2018.
Muhith was born on 25 January 1934 in Dhopadighi, Sylhet.
He was the third child of Advocate Abu Ahmad Abdul Hafiz who was a leader of the Pakistan Movement and the founder of the then Sylhet District Muslim League.
His mother Syed Shahar Banu Chowdhury was also active in politics and social work.
Muhith had been a recognised figure in the World Bank, IMF, IDB, ADB and different organisations of the United Nations for quite a long period.
He secured first place in the intermediate examination in the province in 1951 from Sylhet MC College.
Muhith stood first class first in BA in English Literature in 1954 from Dhaka University and passed his MA with credit from the same university in 1955.
During his service period, he studied at Oxford University from 1957-58 and received an MPA degree from Harvard University in 1964.
After joining Pakistan Civil Service in 1956, he served in different capacities in the East Pakistan government, the central government of Pakistan, and then Bangladesh.
During his service as the chief and deputy secretary of the Pakistan Planning Commission, he made a report on the disparity between East and West Pakistan in 1966, and that was the first report submitted on that issue in the Pakistan National Assembly in fulfilment of the constitutional obligation.
Muhith was the first diplomat of the Embassy of Pakistan in Washington who transferred his allegiance to Bangladesh in June during the Liberation War of 1971.
He was appointed as the secretary of planning in January 1972 and secretary of the External Resources Division of the Finance and Planning Ministry in May 1977.
Muhith went for early retirement in 1981 from his service and started the second chapter of his career as a consultant on economic and development matters at the Ford Foundation, IFAD, UN, UNDP, ADB and World Bank.
He was finance and planning minister from March 1982 to December 1983.
Muhith was also a pioneer of the Bangladesh Environment Movement and the founder and president of BAPA established in 2000.
He joined the Awami League in 2001 and was elected a member of parliament in 2009 from his home constituency in Sylhet.
Muhith was awarded the highest civil award Swadhinata Padak (Independence Award) in 2016 for his contribution to the Liberation War and devoted record of public service.
He was equally gifted as a writer and published 35 books on different subjects, including the Liberation War, economic development, history, public administration and political problems.
Import of luxury items to be controlled: Finance Minister
Finance Minister AHM Mustafa Kamal has said that import of luxury goods will be controlled as part of tightening the belt.
“But import of non-essential commodities will be controlled in public or private sector”, he said while briefing reporters after the two consecutive meetings of the Cabinet Committee on Economic Affairs and Cabinet Committee on Public Purchase on Wednesday.
Also read: Finance Minister wonders why people moving to Europe risking lives
He said Bangladesh Bank always controls the import of some unnecessary items. But there won’t be any restriction on the consumer goods which are necessary for people and essential as part of project implementation.
Kamal said this responding to a question whether Bangladesh Bank will take more measures to control imports to avoid any unwanted situation like Sri Lanka or Nepal.
Many economists expressed concerns over the Bangladesh’s growing foreign debts while Bangladesh Bank also imposed some restrictions on import of some items.
The finance minister said both imports and exports have increased. But always imports are higher than exports. Exports cannot overtake imports in our country, he observed.
“Some imports are directly related with projects which we have to allow. Some imports must be controlled as those are not always open”, he said.
He said as internal vulnerability exists, these luxury items will be controlled.
“If the situation becomes normal, then we will allow import of these items”, he opined.
Also read:Be nice to businessmen to inspire them to pay VAT, Kamal tells officials
Referring to a report of the World Bank the finance minister said globally the market prices have gone up by 38 per cent while price of beef has increased by 35 per cent, chicken by 55 per cent, soya bean oils by 35 per cent, tea by 13 per cent, TSP fertiliser by 65 per cent and urea fertiliser by 135 per cent.
So, we have to take coordinated measures to control the market, said Kamal.
Bangladesh in safe zone on foreign loan front: Finance Minister
Finance Minister AHM Mustafa Kamal has said that Bangladesh is in the safe zone in terms of receiving the foreign loans.
He made the remarks while briefing reporters after the two consecutive meetings of the Cabinet Committee on Economic Affairs (CCEA) and Cabinet Committee on Public Purchase (CCPP) on Thursday.
Also read:Govt to consult with all on proposed universal pension scheme: Finance Minister
Defending his remarks, he said Bangladesh’s debt-GDP ratio is 34 percent which is lowest in the world.
Our foreign exchange reserves are much higher than requirement, remittance is increasing, export is growing, and inflation is under control. We’re in the safe zone”, he said.
Kamal said the whole world is appreciating Bangladesh for its economic performances.
He said the countries having debt higher than their GDP (gross domestic products) are currently in danger. “But we are not at that level. Rather, our debt is much lower than GDP,” he asserted.
Responding to another question, the finance minister said the toll rates of the Padma Bridge have not been fixed yet. But a joint venture of South Korea and China has been awarded a contract to collect the tolls from the Padma Bridge project.
Also read:NBR works for win-win tax in upcoming budget: Finance Minister
“We didn’t do any detailed work on it. But we have a plan to make some profits by collecting revenue from the Padma Bridge project in order to implement more similar projects”, he said.
He said both the government and the users of the Padma Bridge will benefit from the project.
“We hope we could collect more revenue than the requirements to meet its expenditures”, he added.
Govt to consult with all on proposed universal pension scheme: Finance Minister
Finance Minister AHM Mustafa Kamal has said that the government will consult with stakeholders about the modalities of the proposed pension scheme for all citizens of the country, including expatriates.
“The things are now at the study level. We’ll formally talk with all,” he told reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs and the Cabinet Committee on Public Purchase on Wednesday.
The finance minister was responding to a question whether the private companies will have to contribute any amount against their staff’s individual contribution to the pension scheme.
READ: NBR works for win-win tax in upcoming budget: Finance Minister
Meanwhile, the Finance Ministry uploaded a draft law titled: “National Pension Authority Act 2022” on its website seeking public opinions on it.
Interested persons have been requested to send their opinions on it by April 12 this year.
Earlier on February 23, the finance minister announced that the government will introduce a universal general pension scheme for all citizens of the country including expatriates.
During his announcement he said a government authority will be formed soon and the scheme will come into operation within the next six months to one year.
Under the pension programme, he said, every citizen of the country, aged 18-50, will get back his monthly deposit along with the same amount of government contribution. “Initially, the scheme will be optional for a citizen, but later it'll be mandatory for everyone.”
He said the idea of introducing the pension scheme was mentioned in the last national budget. “That’s why it doesn’t require further approval in the budget.”
Describing the pension pattern, the finance minister said the citizens will deposit a certain amount of money after every three months.
He said a citizen has to deposit money for 10 years without any break to avail of the return from the scheme on completion of his 60 years of age.
One can take a loan up to 50 percent of the total deposit from the scheme, the minister said.
He said, for example, if a citizen deposits Tk 1,000 per month up to 60 years, he will get Tk 64,776 per month with 10 percent interest and other 6 percent benefits. But if one starts depositing the pension money at the age of 30, he will get Tk 18,908 per month on completion of deposit at the age of 60.
If the amount is over Tk 1000, it will be rationally increased and get the return at that rate, Mustafa Kamal said.
In the case of the pensioner’s death, his or her nominee will get the benefit up to the pensioner’s 80 years of age.
The finance minister said the scheme authority will finalise the detailed terms and conditions of the scheme. This will be kind of a provident fund of the government and non-government organization, he added.