United News of Bangladesh

Bangladesh is showing an upward trend again in remittance sent by expatriates which exceeded US$ 2 billion in 28 days of August. According to Bangladesh Bank's updated report on remittance as of August 28, expatriate Bangladeshis sent $2.07 billion to the country through the formal channel. In the same period of August 2023, remittance inflow was $1.43 billion. Bangladesh receives $1.9 billion remittance in July Bangladesh witnessed the lowest remittance in the last 10 months in July 2024 amid the student movement. In July, the country's remittance was about $1.91 billion. It is to be noted, banks were closed from July 19 to 23 due to the situation caused by the students’ movement against discrimination, public and general holidays. Apart from this, broadband internet was off for 5 consecutive days and mobile internet was off for 10 days. Because of this, foreign transactions with the country's banks were almost stopped. Bangladesh forex reserves soar to $19.53bn boosted by remittance Bangladesh Bank has taken different steps to increase remittance to overcome the foreign exchange crisis and increase reserves. In the last few months, these measures have had a positive impact on expatriate income or remittance coming into the country.  

Muhammad Fouzul Kabir Khan, the interim government’s adviser for Power, Energy, and Mineral Resources, has said that the private sector will be encouraged to participate in the energy sector, but only through competitive processes. “There are a lot of bad names in the energy sector, and businessmen should move forward to overcome such scandals,” the adviser said during a meeting with representatives of the Bangladesh Solar & Renewable Energy Association (BSREA) at the Ministry on Thursday. During the meeting, BSREA leaders raised several demands to remove various bottlenecks in the sector that hinder investment. In response, the adviser directed the ministry to form a committee to address these issues. The adviser underscored the need to expand beyond the traditional focus on solar energy within the renewable sector. "We have to move beyond the concept that renewable energy means only 'solar.' You need to explore new ideas and options for investment in the renewable energy sector," he stated. He also highlighted the importance of finding innovative technologies to develop sustainable solar cells and proposed exploring unconventional options like utilizing tea garden spaces for solar projects. Fouzul further advised exploring the potential of floating solar systems as an effective solution to overcome land scarcity issues in renewable energy projects. As the adviser for road transport, bridges, and railways, he also called for initiatives to modernize and increase the capacity of solar energy systems. The meeting was attended by Senior Secretary of the Power Division Md. Habibur Rahman, President of BSREA Md. Nurul Akhtar, Senior Vice President Mostafa Al Mahmud, and other senior officials from the Ministry and BSREA.

Bangladesh Bank on Thursday announced a new 'Agricultural  and Rural Credit' disbursement policy with the target of disbursing Tk 38,000 crore loan for the fiscal year 2024-25 to ensure food security in the country. The loan target is 8.57 percent higher than that of FY 2023-24. Against the target of Tk 35,000 crore set in the last financial year FY 2023-24, the banks distributed agricultural and rural loans of Tk 37,153,90 crore which is Tk 4,324.01 crore more from the 32,829.89 crore distributed in the previous fiscal year 2022-2023 or 13.17 percent more. The central bank Governor,  Dr Ahsan H Mansur, in a press conference at Jahangir Alam Conférence hall in the central bank headquarters unveiled the agricultural and rural credit disbursement policy for FY2024-25. The target for state owned and specialised banks has been set at Tk12615 crore, while foreign and private sector banks have been given  a target of Tk 25,385 crore. The governor said that considering the importance of adequate credit flow in the agricultural sector to achieve GDP growth through increasing agricultural production in the country and controlling inflation, the central bank has set a target of Tk 38,000 crore for agricultural and rural credit distribution in the current financial year. "In order to distribute adequate loans at low interest rates under the Agricultural and Rural Credit Policy, the local private banks are required to disburse at least 50 percent of the target through their own network and compulsorily 60 percent of the target to the crops and crops sector, 13 percent to the fisheries sector and 15 percent to the livestock sector," said Dr Mansur. Deputy Governors, head of different departments of the central bank, Managing Director (MD) and representatives from all banks were present.

Bangladesh Financial Intelligence Unit (BFIU) on Wednesday instructed banks to freeze accounts belonging to Salman F Rahman, along with those of his wife and son. Banks were also instructed to suspend transactions across these personal accounts for an initial period of 30 days, according to a letter from BFIU. The BFIU requested an update on the status of these accounts within five working days of the issuance of the letter. Salman, a prominent Bangladeshi businessman, former MP and adviser to the ousted prime minister Sheikh Hasina, was arrested on August 13. One of the banks with substantial exposure to Salman's Beximco Group is Janata Bank. Salman's notorious legacy appears to have extended to his son, Ahmed Shayan Fazlur Rahman, who recently lost his directorship at IFIC Bank due to loan irregularities.

Bangladesh Bank (BB) will not tolerate any bid to create instability in the central bank-controlled financial institutions including the Bangladesh Institute of Bank Management (BIBM). The central bank does not want instability in the financial institutions in the name of removing discrimination, rather it will prefer resolving deprivation and frustration issues through the official channels, said central bank Governor Ahsan H. Mansur on the sidelines of a press conference on Wednesday. He said if discrimination happens in any financial institution, the deprived officials can write the issues to the head of the institutions. Some BIBM officials told UNB that some employees of BIBM recently tried to create unexpected situation to remove some officials. After the failure of such an attempt, a group of BIBM employees submitted their demands in writing to the Director General of the BIBM. For comment, UNB tried to contact BIBM DG Dr. Md. Akhtaruzzaman over phone and SMS, but he did not respond. BIBM is the national training, research, consultancy and education institute on banking and finance collectively owned by the banking sector of the country.

 Finance and Commerce Adviser Dr Salehuddin Ahmed on Tuesday asked the National Board of Revenue (NBR) to expedite the export-import activities after proper verification of documents.   “We told them to release the items from the ports scrutinizing all the required documents,” he told reporters after meeting NBR officials at the NBR at Sher-e-Bangla Nagar during his maiden visit. He mentioned that the National Board of Revenue is an important organization for the government and they have a big role to flourish industries and trade in the country. “Their job is to collect revenue, the collection has to be maximum without giving any trouble to the taxpayers, but they have to follow the rules and regulations properly,” he said. The adviser also said that he asked the NBR to take effective measures for increasing the tax GDP ratio, which is below double digit right now. ”We can not advance by always taking loans from others,” he said. Responding to a question, NBR Chairman Md Abdur Rahman Khan said that the NBR will take all necessary measures to attain the revenue target of Tk 480,000 crore in the running fiscal. “We will ensure that there will be no leakage and collect the revenue at the proper time. For that our revenue officials will work hard,” he said. He mentioned that the NBR will try to give its appropriate services at the quickest possible time. “We will give the businesses our full confidence to earn our revenue,” he said.  

The Dhaka Chamber of Commerce and Industry (DCCI) has expressed its support for Bangladesh Bank’s (BB’s) steps against bank looters and money launderers. A delegation led by the president of Dhaka Chamber of Commerce & Industry (DCCI) Ashraf Ahmed called on Bangladesh Bank Governor Dr. Ahsan H. Mansur at the central bank headquarters on Tuesday. The DCCI President said this to the reporters after meeting with the governor. He said that raising interest rates to control inflation works for a certain period. “We want inflation to come down under control. When inflation increases, the cost of traders also increases. Because then we have to increase the salary of our workers. We all have to work hard to reduce inflation,” he pointed out. Ashraf said the BB has several schemes for financing the SME sector. If these schemes can be accelerated, it will be good for SME entrepreneurs. Besides, a discussion was held with the governor on how to simplify the process of foreign loans and reduce pressure on bank loans. The reason behind the increase in lending interest rates are banking system failure. Dishonest traders have stolen millions of funds from banks. As a result, the cost of the bank has increased, and at the same time the interest rate has also increased, he pointed out. In response to a question about taking action against those who have looted banks and money laundering, he said, “We ordinary businessmen have not looted any bank. If someone embezzles money from the bank then common borrowers like us have to pay for it.”   He also said that if the amount of bad loans can be reduced, the interest rate of bank loans will be reduced. We also agree with what Bangladesh Bank is doing to catch the bank robbers.  

 Finance and Commerce Adviser Dr Salehuddin Ahmed on Tuesday urged the business community to do their business transparently, honestly and sincerely. “Please do business transparently and honestly and don’t make any transaction under the table,” he told reporters after a group of the country’s leading businessmen met him at his ERD office this afternoon. Responding to the businesses’ concern over the law and order situation, the Adviser assured them of providing necessary security alongside taking prompt steps of issuing LCs as well as ensuring that there is no congestion in the airports and seaports for loading and unloading of goods. Asked about the demand from the RMG sector to provide soft loans to deal with the current situation, Dr Salehuddin suggested they hold a meeting with the Bangladesh Bank Governor in this regard. “trade and commerce are a very important part of the country’s economy as those generate employment and expedite growth,” he said. Salehuddin said that the demands raised by the business community are not huge and efforts would be made to resolve those although the previous government ignored many of their demands. He had also assured some foreign buyers who were present in the meeting that their investment opportunities would be good here in Bangladesh side by side the law and order situation and banking facilities remained favourable for them. “We’ve assured them (foreign buyers, investors) and I think they are assured. They have told me that there has been a new beginning in Bangladesh,” he added. Referring to Bangladesh’s trade and economic partnership with the UK, he said that the UK is a very large market for Bangladesh’s RMG products while they are willing to expand it. Besides, he also urged them to diversify the items that the UK imports from Bangladesh other than the RMG.Emerging from the meeting, former FBCCI president AK Azad said that they have requested the Adviser for taking steps to delay the process for availing LDC Graduation facilities by three more years to 2029 instead of the 2026 period. Besides, he said the business leaders also demanded for bringing necessary reforms in the trade bodies and associations as early as possible and thus giving elections to those to elect the new leadership.Azad, also a renowned industrialist and businessman, said that they have raised the issue of current law and order situation before the Finance Adviser side by side easing up congestion at the airports and seaports to ensure smooth shipment of goods. He said if these negative sides are not addressed, then they might have to think about shifting their businesses to other countries. So, the main focus of the business community was to improve the law and order situation, sample clearance and easing congestion at the Chattogram Port. Referring to the probable withdrawal of EDF facility from the central bank and cash incentives as well as scarcity of US dollars, Azad said if these things are not addressed, then there would be a negative impact on the country’s operations.In this regard, the Adviser suggested the business community sit with the central bank Governor. Azad said the Finance Adviser also suggested they coordinate with the law enforcement agencies like police, RAB apart from Bangladesh Army to improve the law and order situation. The former FBCCI president also raised the issue of some incidents of extortions in some places in the industrial arena which the Adviser has given assurance of giving proper attention.  

  Speakers at a seminar highlighted the need for legal reforms related to the banking sector, while insisting that political interference should be eradicated to run this vital sector smoothly. They said this while speaking at a seminar titled ‘Reforming the banking sector and what should be reformed’, held at the Jatiya Press Club on Monday. A group of bankers under the banner Conscious Bankers’ Society organised the seminar. Professor Abu Ahmed of DU was the chief guest at the event. He said that the banking sector should be kept free from the influence of individuals and various business groups. A panel of competent and honest people should be formed by Bangladesh Bank (BB) for the appointment of directors of various banks. Weighing in on the situation that has arisen around a dozen Islamic banks that the S Alam Group had taken control of before they ended up in the scanner of law enforcers following the political changeover on August 5th, Prof. Ahmed emphasized that these banks have to be returned to their original investors, and side by side an expert panel on Shariah-based banking should be appointed for these banks. "The customers’ trust in Islamic banks would be restrained when the ownership of the banks are returned to those who were the founders of those banks,” he pointed out. Prof Ahmed said the banking commission should be constituted with honest and competent people. The Banking Commission shall determine the actual status of defaulted loans through an independent auditor. “Crooked policymakers and money launderers responsible for defaulting loans should be brought to justice. Banks must be freed from family and government control,” he said. A dedicated bench of the High Court should be constituted for expeditious disposal of cases related to banking irregularities, he also pointed out. Professor Dr. Mizanur Rahman of DU gave a presentation at the seminar. Former senior secretary Yunusur Rahman, former secretary Dr. M. Aslam Alam, former executive director of Bangladesh Bank Abdul Awal Sarkar, colonel (retd) engineer M. Alauddin PSC, professor of the law department of DU Naqib Nasrullah, Former FBCCI Vice President Abul Kasem Haider, distinguished banker Dr. M Kamal Uddin Jasim, among others, spoke at the event. The speakers emphasized that a director of a bank cannot take a loan from his own bank and at the same time cannot be a director of another bank. In appointing a director, his past work record and experience should be given importance. The board of directors should have one-third independent directors, they asserted.  

The Bangladesh Financial Intelligence Unit (BFIU) has sought the bank account details of 13 people, including the seven brothers of S Alam Group’s Saiful Alam. The BFIU sent to all banks in this regard on Monday. The letter asked to provide all the information including the name of parents, national identity number, and all kinds of account transactions. The list also includes Saiful Alam's wife Farzana Parveen and their two sons Ahsanul Alam and Ashraful Alam Saiful Alam's brothers named in the letter are Mohammad Abdullah Hasan, Osman Gani, Abdus Samad, Rashedul Alam, Sahidul Alam, and Morshedul Alam. The others are Hamidur Rahman's son Miskat Ahmed, Abul Kashem's daughter Farzana Begum, and Ferdousul Kabir's daughter Shahana Ferdous are also on the list. Although they are connected to the S Alam family, the specific nature of their relationship could not be confirmed.