Economics
Financial incentives for intermediaries cannot attract foreign investment
The Bangladesh Investment Development Authority (BIDA) has taken several initiatives to attract foreign investment. One such initiative is to offer financial incentives to expatriate Bangladeshis who act as intermediaries in attracting foreign investment. Any expatriate Bangladeshi who facilitates foreign investment will be provided with a financial incentive amounting to 1 percent of the investment they help secure. This investment must be new and amount to at least USD 5 million. Many expatriate Bangladeshis attempt to attract foreign investment by leveraging their personal image and relationships. The provision of financial incentives will undoubtedly encourage them.
Islami Bank holds Eid reunion programme
An Eid reunion was held at the head office of Islami Bank Bangladesh PLC on Sunday organized by Islami Bank Officers’ Kallyan Somity (IBOKS).
Budget could have been more inclusive for expansion of SME sector
The VAT on all types of plastic products at the production stage has been increased from 7.5 percent to 15 percent. The tax on cotton yarn at the production stage has been raised from Tk 3 to Tk 5 per kg, and the same applies to yarn made from artificial fibres or blends. Additionally, VAT on blade production has also been increased.
The notes finally reach the market
The ‘new note’ of the ‘new Bangladesh’ has finally reached the market, though it has not come into the hands of the larger public. It was possible only because there was a firm resolve to release the note before the Qurbani Eid. Before the Bakri Eid, the chief adviser, the finance adviser and the governor pressed for the printing of the note. I heard that during this great endeavour, the governor and the finance adviser regularly monitored the process. Due to this created pressure, the employees concerned of Bangladesh Bank and Bangladesh Security Printing Press were on edge, not at ease for a single moment. However, some credit for printing the note in a short time also goes to the suppliers of the note’s paper and ink.
Legal framework of banking sector must be reformed
On June 4, Bangladesh Bank informed the chairmen and managing directors of five Shariah-based banks in a special meeting that it intends to merge them into a single, stronger Islamic bank. The five banks in question are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank. It is worth noting that toward the end of the last Awami League government’s tenure, an initial attempt was made to merge EXIM Bank with Padma Bank to form a new entity, but that initiative was halted due to political changes.
FY2025-26: Budget Highlights
The government plans to borrow BDT 1200 billion in new long-term debt from the domestic banking system and repay BDT 160 billion in short-term loans. Thus, the net borrowings from the banking system will increase by BDT 1040 billion.
Budget 2025–26: Question of sustainability for private investment
The Budget for the fiscal 2025–26, estimated at Tk 7.9 trillion is a contractionary one targeting realistic GDP growth and lower inflation at 8%. The floating exchange rate has been announced considering high foreign exchange reserve at USD 27.4 billion. Budget has given long term projection, sometimes up to 2030 showing optimism for future economic growth. However, the country at the moment is in a transition towards LDC graduation, declining growth in agriculture (from 3.30% to 1.79%), lower investment to GDP ratio (29.38%), SDGs, uncertainty because of Reciprocal tariff by USA, also non-tariff barriers by neighboughring country.
Controlling high inflation biggest challenge of budget
The size of the proposed budget for the upcoming fiscal year (2025–26) has been set at Tk 7.90 trillion. The size of the ongoing fiscal year’s budget under implementation was Tk 7.98 trillion. Accordingly, the budget size will decrease by Tk 80 billion. For the upcoming fiscal year, an allocation of Tk 2.30 trillion has been made for the Annual Development Programme (ADP) which is Tk 350 billion less than the current fiscal year’s ADP allocation. In the new ADP, the target for foreign loans has been reduced by Tk 150 billion. In the upcoming fiscal year, Tk 850 billion will be taken in foreign loans.
Meghna Bank partners with BRAC EPLInvestment Limited for issuing BDT 400 Crore 2nd Subordinated Bond
Recently, Meghna Bank PLC has signed an agreement for its 2nd Subordinated Bond worth BDT 400 crore with BRAC EPL Investment Limited, who is acting as the sole arranger of the issuance. The signing ceremony took place in the presence of senior officials from both organizations.
Discrimination-reducing budget expected from interim govt
In the face of a challenging global economy, creating a budget in a densely populated country like ours is a difficult task. It cannot be confined within the conventional rules of economics. Among the sectors essential for the social, economic, moral, and intellectual development of a nation, education is one of the most important.