The International Monetary Fund (IMF) has relaxed several targets including foreign exchange reserves, revenue collection, automatic price adjustment of fuel for the $4.70 billion loan package for Bangladesh. At the beginning of this year, the IMF had set forex reserves target at $25.34 billion by September and $26.81 billion by June next year as conditions for the loan package. According to BPM6 – reserve calculation method – Bangladesh’s forex reserves stand at $21.15 billion. Bangladesh urged IMF to downsize required reserves to $20 billion for next loan instalment, says official On a net basis, this amount has further decreased to below $18 billion. In this situation, the Finance Division officials requested the IMF to relax the target for forex reserves. Considering the request, the IMF has relaxed the target. Bangladesh has committed to keep the reserves at $18.4 billion at the end of December this year, and at $20 billion at the end of June next year. IMF delegation meets BGMEA President to discuss challenges and prospects of RMG sector Last Tuesday and Wednesday, the visiting IMF delegation discussed the issues with the relevant officials of the Finance Division of the Ministry of Finance. Sources in the Finance Division said that after discussion, IMF agreed on being flexible on some conditions. Finance Secretary Md. Khairuzzaman Majumder led the meeting on behalf of the government. The IMF mission was led by Rahul Anand, head of the IMF’s Asia-Pacific division. IMF team holds meeting with Power Division, discusses subsidy

The repayment of the loan taken for construction of Padma Bridge started with Tk 316.91 crore paid to the government in the first two installments on Wednesday. Prime Minister Sheikh Hasina received a cheque of Tk 316,90,97,049 as the first and second installments of the loan. Road Transport and Bridge Minister Obaidul Quader handed over the cheque to the premier at her official residence Ganabhaban. The loan was taken from Bangladesh Bank at a low interest rate under an agreement signed between the Finance Division and the Bangladesh Bridge Authority. Speaking on the occasion, the prime minister said the country will continue to march ahead overcoming any barrier and disaster.  “Bangladesh will continue to march forward, maintaining the current pace of its development journey, no matter how many obstacles come,“ she said. The PM sought cooperation from the whole nation to face any disaster, accident, the brunt of the war or inflation as the people in cities and villages did during the construction of the Padma Bridge. "I believe we can move forward overcoming any hurdle if the people stand beside us. Construction of the Padma Bridge with the own finance is the best example of it," she said. She said the government had to overcome a strong obstacle nationally and internationally during the construction of the iconic bridge. PM Hasina said she didn’t get support from a number of people regarding the construction of the country’s longest bridge with own finance.  It was said that it would never be possible, she said. She said different heads of the state and government during talks told her that it would be a tough work since the World Bank withdrew its finance from the project. But only Malaysia supported with then Malaysian Prime Minister Najib Abdul Razak saying that it would be possible with own finance, she noted. Describing the Padma Bridge as the sign of the country’s pride, she said Bangladesh has been able to show its capacity to the world with the construction of the bridge with own finance. “I think it’s not only a bridge, but also a symbol of pride and capacity of the Bengali nation,” she said, adding that the trial run of train through the Padma Bridge also started from Tuesday last. On June 25, 2022, the prime minister opened the country’s largest bridge – 6.15-km Padma Bridge- over the mighty Padma River. The 6.15-km bridge connected directly the country’s 21 south and south-western districts with the capital, and it is expected to accelerate the GDP growth by 1.23 per cent and make an outstanding contribution to socio-economic development by alleviating poverty. The total allocation was Tk 30,193.39 crore, but the allocation for the main bridge was Tk 12,133.39 crore (including Tk 1,000 crore for installation of 400-kv electricity transmission line and gas line). Besides, the Tk 9,400 crore was allocated for river training works, Tk 1,907.68 crore for approach roads (including two toll plazas, construction of two buildings for police stations and three service areas), Tk 1,515 crore for the rehabilitation of the displaced people (caused by the project) and Tk 2698.73 crore for land acquisition. The Padma Bridge is expected to last more than 100 years, but its construction cost will be recovered in the next 35 years. PM’s Principal Secretary M Tofazzel Hossain Miah conducted the cheque handing-over event, while former Cabinet Secretary and Bridge Division Secretary Khandker Anwarul Islam spoke on the occasion. Governor of Bangladesh Bank Abdur Rouf Talukder, Finance Senior Secretary Fatima Yasmin, Bridge Division Secretary Md. Monjur Hossain were present at the event.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) wants Tk 1500 crore assistance from the government to pay workers’ bonus and salaries ahead of Eid-ul-Fitr. The knitwear factory owners’ association claimed that the export-oriented sector may be in dire straits over paying workers ahead of Eid if the financial assistance is not provided. BKMEA has sent a letter regarding the financial assistance to the senior secretary at Finance Division, under the Ministry of Finance. The letter, signed by BKMEA President AKM Salim Osman, on March 30 made a request to the government for cash assistance. Read more: Payments to 3,428 garment workers, families approved from Central Fund BKMEA Executive Vice President Muhammad Hatem confirmed the development to UNB today (April 02, 2023). The letter stated that global economy is in an adverse situation due to the Russia-Ukraine war. Bangladesh’s export sector is going through a challenging time during this struggle for survival as well. Due to the ongoing global recession, most factories do not have enough work orders, so production is running at 50 to 60 percent capacity. It has become difficult to pay the workers’ salaries at the end of the month, BKMEA mentioned in the letter. International buyers are also not paying their dues on time for the products already being exported. There is huge pressure regarding paying salaries and Eid bonus this month, the letter added. “In such a situation, it will be very difficult to handle this pressure without the cooperation of the government and the finance department,” BKMEA said. Read More: Selim Osman elected as BKMEA president for 6th term

The Public Service (Amendment) Bill, 2023 was placed in Parliament on Tuesday seeking to make mandatory for the autonomous, legislative and local government bodies to take clearance from the Finance Division over financial expenditures. State Minister for Public Administration Farhad Hossain tabled the proposed legislation and it was sent to the respective scrutiny committee for further examination. The committee was asked to submit its report within 30 days. Read more: Bill incorporating max 10 years’ jail for leaking PSC exam questions passed in parliament In the existing Public Service Act, 2018, the Finance Division has authority over the financial matters of the government entities, officials and employees, but it was not clear what would be the involvement of the Finance Division regarding the autonomous, legislative and local government bodies. The public universities, the Election Commission, or local bodies like city corporations and union parishads will have to take opinions of the Finance Division over their financial expenditures. Read more: Bill placed in JS to establish universities in Meherpur, Naogaon It had been mandatory too for the autonomous, legislative and local government bodies to take clearance from the Finance Division before, but the enactment of the existing law in 2018 made it unclear.

The government is considering doubling the power sector subsidy to Tk18000 crore in the upcoming budget of FY 22-23. The overall subsidy and incentive allocation is estimated to rise by Tk 16,620 crore to Tk 57045 crore in the upcoming budget, Finance Division officials said on Tuesday. Also read:National Budget to be placed in Parliament on June 9 : Mustafa Kamal In the current budget the subsidy in the power sector was fixed at Tk 9,000 crore. This year, the subsidy is being doubled in this sector. However, in the revised budget, the subsidy in the power sector has increased by Tk 3,000 crore to Tk 12,000 crore for FY-22. The subsidy and incentives have continued increasing in the budget every year. As a result the allocation is also being increased. Such as in the budget of FY 22, Tk 40425 crore allocated as subsidy and incentive which was increased by Tk12857 crore to Tk53 282 crore in the revised budget. The allocation in the subsidy, incentives and loan assistance is estimated to increase by 26.13 per cent or Tk 27910 crore to Tk 177145 crore in the upcoming budget due to adverse impact of Covid-19 pandemic and Ukraine-Russia war, the budget officials said.

Ahead of Eid-ul-Fitr, the government Sunday asked to pay the salaries and allowances of the employees of government, semi-government, and autonomous institutions by April 25. The government has decided to pay salaries and allowances by April 25, the Finance Division said in a notification, as Eid-ul-Fitr will be celebrated on May 3, subject to the sighting of the moon. Also, retired government employees will get their monthly pensions at the same time. Also read: HC seeks explanation over permission before arresting govt employees

The University Grants Commission (UGC) of Bangladesh on Tuesday signed a Memorandum of Understanding (MoU) with the Finance Division and Janata Bank Ltd to avail house loans for UGC employees.

Ordinary citizens alongside stakeholders will be allowed to submit their own suggestions on the upcoming national budget on the website of Finance Division, though it remains unclear how much resource or effort would be expended on incorporating them.