Bangladesh's economic growth has slowed in recent months due to high interest rates, expensive energy supply and political uncertainty, according to trade body leaders and economists. They highlighted that costly funding and inadequate energy supply are hindering business expansion despite the country’s large workforce. Zakir Hossain Nayan, the Convener of the Anti-Discrimination Business Forum at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), told UNB that the domestic business sector is struggling due to high interest rates and the rising exchange rate of the US dollar. “People have reduced their consumption due to high inflation within their income limitations. As a result, Bangladesh's internal trade suffered severely in July and August last year, though it is now slowly gaining pace,” he said. He explained that banks are facing a liquidity crisis, as the past government and their affiliated businesses misused banking policies to secure large loans. This has left over a dozen banks unable to make new investments, while others remain cautious about injecting fresh funds into businesses. Given these conditions, he said that business growth will remain weak in the second half of 2024. He, however, said that the situation is improving as the government has increased money flow in the banking sector, the dollar crisis has eased, and inflation is trending downward. He also mentioned that the export sector remains resilient despite challenges such as unrest in the garment sector, with export orders increasing by 10–15% in 2025. Second report of committee to reform NBR expected next month, focusing on automation Taskeen Ahmed, President of the Dhaka Chamber of Commerce & Industry (DCCI), said that GDP growth in the first quarter of the current fiscal year was only 1.8%, while the manufacturing sector grew by just 1.43%. He noted that Bangladesh’s economy continues to face various challenges, even as it prepares to graduate from the Least Developed Country (LDC) category in 2026. To address these challenges, he emphasised the need for skill development in the SME sector, long-term access to low-cost credit, free trade agreements to boost exports to the Middle East and South Asia, infrastructure development to attract foreign direct investment (FDI), and reforms in revenue and related policies. Ahmed also urged the government to implement policies to promote exports beyond the readymade garment sector, highlighting the potential of pharmaceuticals, leather goods, agro-processing, semiconductors, light engineering, and information technology. He stressed that a comprehensive 'Smooth Transition Strategy' (STS) is crucial, with a strong role for the private sector. Ensuring low-cost funds is essential to revive business growth, he added. Khandoker Rafiqul Islam, former President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told UNB that the garment sector has been able to meet export targets in recent months by operating at full capacity. But he warned that sustaining this trend will be difficult if business expansion is stifled by high costs and an unreliable energy supply. He pointed out that the domestic textile sector is struggling due to shortages in working capital and energy supply. 42,000 Bangladeshi expats seek voter registration abroad The latest Bangladesh Purchasing Managers’ Index (PMI) report revealed a 1.1-point decline in February, recording a slower expansion rate of 64.6. The report attributed this drop to weaker expansion in construction and services, although agriculture and manufacturing continued to grow at a faster rate. The PMI, developed by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange with support from the UK Government and technical assistance from the Singapore Institute of Purchasing and Materials Management (SIPMM), provides timely insights into Bangladesh’s economic health. According to the report: The agriculture sector recorded its fifth consecutive month of expansion, with faster growth in new business, business activity, input costs and order backlogs. Employment contraction slowed. The manufacturing sector posted its sixth consecutive month of expansion, with faster growth in new orders, factory output, input purchases, and supplier deliveries. But new exports, finished goods, imports and employment grew at a slower rate, while order backlogs contracted faster. The construction sector saw its third month of expansion but at a slower pace. New business and construction activity slowed, while input costs rose. Employment returned to growth, and order backlogs contracted at a slower rate. The services sector expanded for the fifth month but at a slower rate. Growth in new business, business activity and employment decelerated. The order backlogs index turned negative, while input costs increased. Only an elected government can drive real economic growth: Abdul Awal Mintoo “Bangladesh's PMI readings indicate sustained expansion for the fifth month, driven by continued export growth and a seasonal uptick in agriculture, while construction and services posted slower expansion,” said M Masrur Reaz, Chairman and CEO of Policy Exchange. He cautioned that business confidence remains weak due to sluggish demand, energy disruptions, and ongoing protests. A sustained recovery, he argued, will depend on improved law and order, political consensus on the election roadmap, and the swift implementation of key reforms.

Bangladesh and Kuwait on Sunday reaffirmed their commitment to strengthening diplomatic, trade and economic ties, with a focus on investment, energy, food security and migrant welfare. Newly appointed Ambassador of Kuwait to Bangladesh Ali Tunyan Abdul Wahab Hamadah met Chief Adviser Prof Muhammad Yunus at the State Guest House Jamuna and discussed ways to strengthen the ties. Welcoming the Ambassador, the Chief Adviser reaffirmed the strong historical ties between Bangladesh and Kuwait and encouraged greater collaboration in key sectors. “Kuwait and Bangladesh are long-standing friends. There are many investment opportunities here, and halal food can be a great sector to explore. The global market for halal food is huge. I encourage you to include young people in this initiative,” Prof Yunus said. The Chief Adviser invited Kuwaiti investors to explore opportunities in Bangladesh’s Special Economic Zones (SEZs) and the upcoming Bangladesh Investment Summit in Dhaka on 7-9 April. “Bring investors from Kuwait during the summit. It will be a big opportunity for both countries,” he said. India seeks friendly ties with Bangladesh: Rajnath Singh Ambassador Hamadah conveyed full support for Bangladesh’s Interim Government on behalf of Prime Minister Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah and the people of Kuwait. "We are looking forward to working together," he said. Both sides discussed expanding crude oil imports from Kuwait to support Bangladesh’s growing energy demands. The Chief Adviser invited Kuwait to invest in a joint venture crude oil refinery in Bangladesh and urged the oil-rich Gulf nation to explore cooperation in renewable energy projects. The Chief Adviser stressed the importance of ensuring better working conditions for Bangladeshi workers in Kuwait, particularly female workers. He also acknowledged the strong defence collaboration between the two countries and praised the professionalism of Bangladeshi military personnel serving in Kuwait. They also reaffirmed their dedication to deepening economic and diplomatic ties.  “Our partnership is built on mutual respect and cooperation. We are committed to expanding collaboration in trade, energy, and beyond,” the Chief Adviser said.

Extortion on highways across Bangladesh has reportedly increased in recent months, posing severe threats to commuters, transport workers and businesses dependent on road transport. Despite efforts by the government, the illegal practice continues unabated, raising significant concerns regarding public safety and the nation’s economic stability. Reports indicate that organised groups, allegedly with links to influential local figures, are operating extortion rackets at various points along national and regional highways. These groups primarily target trucks, buses and other commercial vehicles, coercing payments from drivers. Those who refuse to comply face harassment, intimidation, and, in some cases, physical assaults. Extortion: Battery-run autorickshaw drivers block Dhaka-Aricha highway This surge in extortion is taking a severe toll on transport workers and businesses, increasing the cost of goods and services due to additional financial burdens on logistics operations. TIB Study Exposes Rampant Corruption A study by Transparency International Bangladesh (TIB), published on 5 March 2024, revealed that private buses and minibuses pay nearly Tk 1,059.37 crore annually in extortion money. Political affiliates, highway police personnel, city corporations Bangladesh Road Transport Authority (BRTA), and municipal officials have been implicated in collecting these illicit payments. According to the study, BRTA officials and employees receive the highest share, exceeding Tk 900 crore, in bribes for vehicle registration, certification, and renewal processes. Extortionists must be brought to book: DMP Commissioner Although law enforcement agencies claim to be taking measures to control extortion, little progress has been made in curbing the practice, leaving commuters and transport workers vulnerable. Protests Against Extortion Intensify Growing frustration among transport workers has led to several protests across the country. On 7 January, battery-run auto-rickshaw drivers in Sherpur upazila, Bogura, blocked the Dhaka-Bogura highway, causing a three-kilometre-long traffic jam. The protestors demanded an end to extortion and urged authorities to intervene. Similarly, on 2 February, members of the Light Vehicle Drivers' Owners' Association formed a human chain on the Dhaka-Chattogram Highway in Cumilla’s Elliotganj. They protested against extortion, car theft, and highway robberies, leading to discussions with highway police officers. The protest was called off after assurances were given that their concerns would be addressed. Industry Leaders Voice Concerns Tofajjol Hossain, President of the Bangladesh Truck-Covered Van Owners' Association, expressed concerns over the resurgence of highway extortion, noting a significant decline in such activities following the political changeover on 5 August last year. But he claimed that extortion has intensified in recent months. “Before 5 August last year, extortion activities were primarily carried out by the then-ruling Awami League and its affiliate organisations. Now, reports suggest that BNP and its affiliated groups are involved in these illegal activities,” he alleged. He pointed out that extortion hotspots include Karwanbazar, Gabtoli, Aminbazar, Chankharpul, Kanchpur Bridge in Narayanganj and Haji Ganj in Chandpur, affecting daily transport operations. Ashis Kumar Dey, General Secretary of the National Committee to Protect Shipping, Roads and Railways (NCPSRR), echoed similar concerns, stating that despite a change in government, highway extortion remains unchecked. He warned that as transport costs rise due to extortion, both passenger fares and goods prices will increase, burdening the general public. He outlined key measures to combat extortion, including a strict government stance backed by political will, police reforms and training to change their mindset, strict law enforcement free from political influence, and the professional development of transport owners and labour leaders without political affiliations. Experts Call for Urgent Reforms Dr Kazi Saifun Newaz, Associate Professor at the Accident Research Institute of Bangladesh University of Engineering and Technology (BUET), highlighted the role of powerful individuals in highway extortion. “Even when complaints are lodged, police find it difficult to take action due to political influence,” he said. Dr Newaz emphasised the need for police reforms, arguing that promotions and postings should be based on merit rather than political considerations, and called for undercover investigations and the use of hidden cameras by law enforcement officers to identify corrupt practices. Highway Police Deny Allegations Deputy Inspector General (DIG) of Bangladesh Highway Police (Operations), Shafiqul Islam, dismissed allegations of widespread police involvement in extortion. “I personally visited two locations, one in Cumilla and another at Mawna Chowrasta in Gazipur, where protests were held. Transport workers accused the police of extortion, but in reality, many of these complaints came from drivers of auto-rickshaws and smaller vehicles that are prohibited on highways,” he said. He argued that allegations against the police stem from enforcement actions against unauthorised vehicles. “While silent extortion does exist, it is challenging to control. However, we are taking action against any complaints brought to our attention,” he added.    

Bangladesh Bank (BB) is set to unveil its new monetary policy for the next six months in February, foregoing an increase in the policy rate amid concerns over the rising cost of production and sluggish private sector credit growth, officials said. They said the central bank’s monetary policy advisory board has recommended maintaining the current policy interest rate, citing the adverse effects of previous rate hikes on private credit flow. The board has suggested that private sector credit growth be maintained within a range of 8.5 to 10 per cent. A senior official at the central bank’s monetary policy department noted that the central bank had raised the policy interest rate three times under the interim government, leading to a decline in private credit flow. “Further increases in interest rates could negatively impact employment and the manufacturing industry. Hence, it is advisable not to raise the policy rate further,” the official said. According to the central bank data, the policy interest rate was raised five times in 2024, climbing from 7.75 per cent to 10 per cent. Following the political transition, BB increased the rate by 0.5 percentage points to 9 per cent on 27 August, then to 9.5 per cent on 25 September, and again to 10 per cent on 27 October. Consequently, lending interest rates have also risen. In May, the lending rate stood at 11.28 per cent, increasing to 11.52 per cent in June and 11.57 per cent in August. Bangladesh Bank to announce monetary policy on Feb 10 Rubayet Ferdous, a garment entrepreneur from Ashulia, expressed concern over the high borrowing costs. “Many entrepreneurs are struggling due to increased interest rates, which have escalated the cost of funds. Despite the need for additional financing, many businesses refrain from taking bank loans because of the high costs,” he told UNB. Ferdous highlighted that his firm had planned to commence operations of a new production unit but has been unable to proceed due to the prohibitive cost of funds. “Export-oriented industries are not seeing increased rates from buyers, making it difficult to absorb higher borrowing costs. If the central bank ensures lower-cost funding, many halted projects could resume operations,” he added. Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), acknowledged that the central bank had previously kept interest rates low to benefit large borrowers. “Given the current economic conditions and the need to control inflation, the recent hikes in policy interest rates were justified. However, the central bank must now stabilise lending rates for long-term sustainability,” she said. Dr Mustafa K Mujeri, former chief economist of the central bank, said that while the central bank’s policies are designed for the broader economic interest, they are not always popular. Bangladesh Bank allows repatriation of outsourcing income by MFSPs “Now is the time for smart and stable policymaking that considers various domestic economic factors. From this perspective, we do not recommend further policy rate increases,” he said. But Bangladesh Bank Governor Ahsan H Mansur last Thursday asserted that traders need not worry about higher loan interest rates. Reacting to this, Selim Raihan, Professor of Economics at Dhaka University, criticised the governor’s stance on social media. “This statement does not align with the real economic situation. Although raising interest rates aims to curb inflation, it also introduces new challenges for businesses,” he wrote in a Facebook post.

The National Board of Revenue (NBR) on Wednesday reduced the regulatory duty on both refined and raw sugar imports by 50 percent to stabilize the local market prices. The duty has been cut from 30 percent to 15 percent, effective immediately. NBR explained that this measure is intended to make sugar prices more bearable for consumers.  It pointed out that various global and domestic factors have contributed to the recent rise in the prices of daily essentials, including sugar. Due to the global war, political unrest, and the significant devaluation of the Bangladeshi currency, prices of several essential goods have escalated. Items such as baby food are also becoming increasingly unaffordable for the common man, NBR noted. It further said that recent student protests and the ongoing flood situation have added additional pressures, driving prices of essential items even higher. NBR accelerates efforts to clear revenue case backlog As a result of the 15 percent reduction in regulatory duty, the customs duty on raw sugar now stands at Tk 11.18 per kg, while refined sugar is taxed at Tk 14.26 per kg at the import level. The NBR expects the price of sugar to decrease by a similar amount at the consumer level.  The NBR also expressed hope that lowering the customs duty will discourage sugar smuggling through illegal channels and boost legal imports.  According to the available data, the annual consumption demand for sugar in Bangladesh is 2 to 2.2 million tonnes where Only 1.5 per cent of the country’s demand is met with locally produced sugar. Meghna Group of Industries (MGI) and City Group are the two main importers of sugar followed by S Alam Group, Abdul Monem Ltd and Deshbandhu Sugar Mills. At present, these five private sugar mills imports more than 98 percent of the country's annual demand for refined sugar, whereas the raw sugar mostly sourced from Brazil.

Chief Asia Economist and Co-Head of Global Research Asia, HSBC Frederic Neumann has said that even though Bangladesh’s GDP growth rate has been set to a revised 4.5% for FY2024-25, the country will rebound to 7.1% in the following year. This growth will be largely driven by exports and remittances, both of which are showing positive signs despite the ongoing challenges in the global economy, he said in a webinar based on latest HSBC Global Research report on Bangladesh ‘Regaining balance - Bangladesh looks to recovery’. The Hongkong and Shanghai Banking Corporation (HSBC) Limited in Bangladesh organised the economic outlook webinar titled ‘Navigating Bangladesh’s Crossroads’ highlighting the latest global and Asian market developments and sharing perspectives on Bangladesh. Bangladesh received a $425mn remittance in 5 days of Oct: BB Key speaker Neumann highlighted that the garment sector, which accounts for 83% of the country’s exports, is expected to grow by the demand from international markets. At the same time, imports, which had been strained by rising global energy prices, are now stabilising reflecting a recovery in domestic demand and easing cost pressures. He also mentioned that remittances are anticipated to grow driven by improved employment conditions in key overseas markets. This rise in remittances will not only support household consumption but play a significant role in sustaining the broader economic recovery. Neumann, however, noted that while these factors are promising, challenges remain, particularly with inflation. This will continue to affect both household spending and business costs. Structural reforms in the banking sector and efforts to control inflation will be essential for unlocking Bangladesh’s full economic potential and ensuring long-term, sustainable growth. Finance Adviser urges banks to ensure rigorous loan scrutiny and inclusive lending During the webinar, he added, “Bangladesh is already well on its way to recovery. Macroeconomic adjustments undertaken in recent months, and robust economic fundamentals, should pave the way for growth to rebound over the coming year. A rapid implementation of reforms would help to speed up the process further.” The event was also attended by Md Mahbub ur Rahman, Chief Executive Officer, HSBC Bangladesh and Gerard Haughey, Country Head of Wholesale Banking, HSBC Bangladesh. Almost 300 clients and stakeholders were also in attendance at the virtual event.  

The Newspaper Owners' Association of Bangladesh (NOAB) held a views-exchange meeting on the current and future state of the country’s economy at Pan Pacific Sonargaon Hotel in the capital on Saturday. Bangladesh Sustainability Excellence Awards 2023 recognizes 6 corporates, 3 individuals Chaired by NOAB President AK Azad, the meeting was also attended, among others, by former caretaker government adviser and former Dhaka University Economics department professor Wahiduddin Mahmud, former Bangladesh Bank governor Salehuddin Ahmed, Policy Research Institute (PRI) executive director Dr Ahsan H Mansur, Centre for Policy Dialogue (CPD) distinguished fellow Dr Mostafizur Rahman, SOAS University of London Economics department professor Dr Mushtaq Khan, Professor and Chairman of the Dhaka University Development Studies department Rashed Al Mahmud Titumir. Among the NOAB members, NOAB Founding President and Daily Star Editor Mahfuz Anam, Prothom Alo Editor Matiur Rahman, Financial Express Editor Shamsul Haque Zahid, Karatoa Editor Mozammel Haque and Bonik Barta Publisher and Editor Dewan Hanif Mahmud were present at the meeting. DMP to start transferring OCs 'soon' in line with EC's directive About 25 journalists from different media outlets were present at the time. In the meeting, the economists highlighted the current state of the country's economy and its future dynamics including inflation, reserve crisis, education system and quality, banking problems and crises, foreign debt, dollar exchange rate, restrictions on economy and trade, preferential trade in western markets etc. Cyclonic storm Michaung likely to move Northwestwards, intensify further

Since the first shots were fired in February 2022, the war in Ukraine has affected the Bangladesh economy in a number of ways, and most of these can be described as supply chain disruptions. The most direct impact was felt in the energy sector, as prices skyrocketed on the international energy markets. Global oil prices soared to more than $120 a barrel amid concerns about a shortfall in global supplies from Russia, up from $70 a barrel before the war. Although prices fell back again to pre-war levels by the end of 2022, they have been rising again over the summer, and are headed back towards the $100 mark. Bangladesh, Indonesia keen to work together in energy, agriculture, health sectors in line with signed bilateral agreementsBrent crude, the oil price benchmark, rose to a 10-month high last week of almost $94 a barrel, up from $72 a barrel at its lowest point in June – heading for its biggest quarterly increase since Russia’s invasion of Ukraine.The price of LNG had arguably the most direct impact on the Bangladesh economy. The war drove gas prices to historic highs, with spot prices in August 2022 up more than 640 percent over the price a year earlier. Thereafter though, prices fell and returned to their 2019-2021 average. By June 2023, they sat 92 percent lower than the 2022 peak, even though the war persisted, and Bangladesh, having been forced to abandon purchases on the spot market, was able to resume LNG supplies on the spot market.During the time that it was forced to go off the spot market for LNG, Bangladesh’s dependence on coal increased. But this traditionally cheap fuel has also seen prices rise through the war. The Coal from Russia/Ukraine region in world market stopped due to the ongoing war resulting in world wide shortages and disruption in various Industries including Steel which uses large amount of Coal. Russia/Ukraine which were major exporters of Steel and alloying elements required for making higher grade steel used in various applications couldn’t supply due to war (Force Majeure) which resulted in disruptions in Steel availability. Nurul Alam joins Energy Division as new secretary Australian coal, that the country has been purchasing for its power plant in Godhra, India, soared to its highest closing price since the war in August of 2022, exceeding $400. Imports of coal from Russia were completely halted under sanctions that came into effect on August 10 in 2022. Now however, they are back to pre-war levels. Coal supplies for its power plants in Rampal and Godhra have both witnessed disruptions due to unpaid bills.As a result of all this, the Bangladesh government had to raise both the gas and power prices as a major part of power generation depends on imported fuels.Besides, the war had a negative impact on all kinds of imports due to shipping restrictions and increased insecurity on navigation routes.The war also continues to disrupt the global trade of key foods such as wheat and vegetable oils, along with fertilisers, and the impact is falling heavily on countries such as Bangladesh.Dependent on imports of those items to feed its large population, many poor and vulnerable to shocks, the country faces the prospect of rising food insecurity. Efforts on to invite int’l bidding within a month for gas exploration: Energy SecretaryAccording to an International Food Price Research Institute study, the proportion of rural households facing moderate or severe food insecurity rose from 15% in early 2020 to 45% in Jan. 2021, then returned to pre-pandemic levels by the end of 2021.Now that 2021 recovery is in danger: Bangladesh saw a record rise in prices of staples in March 2022, along with volatility in the fertiliser market. In this post we discuss Bangladesh’s trade exposure to several commodities facing export restrictions, the fiscal impact of rising imports, and potential measures for easing food security pressures.Eminent economist and CPD executive director Dr Fahmida Khatun pointed out that the Russian invasion of Ukraine took place at a time when the world was just starting to recover from the fallout caused by more than two years of the Covid-19 pandemic. While the world came out of COVID pandemic, China took much longer and the Chinese supplies were absent for various critical items.But the recovery is facing inflationary pressure due to supply shortages in the face of higher demands as countries are beginning to expand economic activities.While the impact of the pandemic was a once-in-a-century shock for the world economy, the ongoing war has come as a new shock. Supply disruptions and financial sanctions pose serious economic challenges. With no signs of reconciliation between Russia and Ukraine, the global economic implications will remain severe for some time to come, according to Dr Fahmida.She said major countries including the US, the UK, Japan and the European Union (EU) have all suspended economic ties with Russia. Sanctions have been enforced on the Russian financial institutions with the objective to disrupt transactions with the country.As Russia is the third largest oil-producing country in the world, the global economy is suffering as a result of high oil prices. Though developed countries are sourcing their requirements from other oil-producing countries, small and poor countries are finding it difficult with their limited financial abilities to meet their energy requirement. In addition, high oil prices have a knock-on effect on other prices, leading to further inflationary pressure.The ramifications of these challenges are seen through higher commodity and oil prices. Food prices have skyrocketed. The CPD executive director said the global sanctions on Russia implies that Bangladesh's trade with Russia is going to be affected.Russia is a market for Bangladesh's ready-made garment (RMG) products. In FY2021, Bangladesh's export to Russia was to the tune of $550 million, and import from Russia was $480 million. Bangladesh imports wheat and maize from Russia. Sanctions mean Bangladesh will have to import these items from somewhere else.Rampal 1320 MW Power Plant has been impacted due to Coal shortages. Russia is also implementing several projects in Bangladesh. The Rooppur Nuclear Power Plant (RNPP) is a large project being implemented by Russia that involves USD 12.65 billion and is scheduled to be completed by 2025.The ongoing war and economic sanctions against Russia could delay this expensive project, which means cost escalation in Bangladesh. This implies higher loans and burden on the country, she observed.

Speakers at a session of exchange of views in Lisbon have stressed the need of recognising the contribution of the expatriates to the economy of Bangladesh. They also demanded removal of harassment and constraints that the expatriates face at the airports of Bangladesh and asked for more funding for expatriate’s dead body repatriation and financial assistance for needy expatriates and their families on their return to Bangladesh. Remarking that expatriates contribute to building of foreign currency reserve in Bangladesh, the speakers called on the Bangladesh government to keep an eye on the reserve lest it be leaked or wasted. As regards increasing remittance to Bangladesh, some of them urged the expatriate Bangladeshi businessmen to recruit more Bangladeshi workers in their businesses. Bangladesh Embassy in Lisbon arranged the event with the members of the Bangladeshi expatriate community in Lisbon on December 7 on ways to increase remittance from Portugal to Bangladesh. The session was held at the auditorium of the Chancery building of the Embassy. Leaders, businessmen, entrepreneurs, journalists and other members of the Bangladeshi community from Lisbon, Porto and other parts of Portugal attended the session. At the outset of the session, Bangladeshi expatriates were invited to express their ideas and recommendations on how to enhance the flow of remittance to Bangladesh through legal channels. Several community leaders, businessmen and general expatriates spoke. Read more: “Bangladesh can be the right place for investment from Brunei” The speakers expressed the feeling of satisfaction that expatriates had been playing a role in the socio-economic development of Bangladesh through their remittance. The speakers also acknowledged the importance of sending their remittance through banking channels. They also felt the need of formation of a Bangladeshi business association in Portugal. If formed, the association could play a critical role in pursuing their interests with the Portuguese authorities, they remarked. Some speakers also indicated that a ceiling set by the Portuguese government on the amount of remittance in a given period of time is hindrance to remittance of bigger amount through banking channel. They requested the Embassy to take up this matter with the Portuguese government to relax this ceiling.   Ambassador Tarik Ahsan commended the Bangladeshi expatriates for sending to their dear ones in Bangladesh their hard-earned money that also helps development of the nation. He acknowledged their contribution to the economy of Bangladesh, particularly in maintaining external balance of payment. Ambassador Tarik mentioned that Bangladesh was currently the seventh largest remittance receiving country in the world. He said although Bangladesh received 24.78 billion USD in the financial year 2020-21, it was reduced to 21.03 billion USD in the last financial year 2021-22. He indicated that, in the current financial year, remittance flow declined in September and October, but picked up again in November. The Ambassador said if  remittance-to-GDP ratio of Bangladesh, which is now 6%, could be at par with that of some of her neighbours, which is at least 9 %, Bangladesh annual remittance could reach 40 billion USD. Read more: Ensuring wellbeing of Bangladeshi expats is govt duty: PM He called upon the Bangladesh’s expatriate community to come forward to make Bangladesh a top remittance receiving country in the world and make Portugal a significant remittance sending country to Bangladesh. Ambassador regretted that sending remittance through non-banking channels helps money laundering from Bangladesh to foreign countries. He also remarked that transaction through illegal channels may give a better rate, but ultimately it does not benefit the recipients much. He argued that such illegal transactions lead to shortage of hard currency and consequent devaluation of Bangladeshi Taka, which leads to increase of cost of living in the country. He said that Bangladesh government has taken many steps to encourage remittance through banking channels. If necessary, more measures would be taken. However, he also stressed the need of consciousness of the expatriates to accept a little sacrifice in terms of lower rates of exchange for the greater interest of the nation.  The Ambassador said that aftermath of covid19 pandemic, Ukraine War and sanctions have caused a crisis of price rise of food, energy and raw materials worldwide and Bangladesh is not aloof from this global crisis. He expressed the resolve that resilient people of Bangladesh including the expatriates, under the far-sighted leadership of Prime Minister Sheikh Hasina, will overcome the challenges and make Bangladesh come out stronger.  Ambassador declared that the Embassy of Bangladesh in Lisbon would like to honour the remittance senders of Portugal through a programme of conferring accolades on some remittance senders selected on the basis of some criteria.

Amidst the global financial crisis, Bangladesh is performing well in three key economic important indicators- exports, remittance, and private credit growth. The latest data of different economic indicators show that despite the global crisis, Bangladesh is turning around in export of garment items. In the first five months of this calendar year, Bangladesh’s garment exports to the European Union have increased by 45 percent. In addition, from January to June of this year, the export of clothing products to the US market has increased by 60.30 percent. Not only Europe-America, but overall exports from Bangladesh increased by 14.72 percent in the first month of the current fiscal year 2022-23, in July, compared to the same period of the previous fiscal year. And in June, the export growth of Bangladesh was 37.19 percent. Also read: Economy has unease, but no crisis: Shamsul Alam Not only exports, remittance, and private credit growth show also a positive development in recent times. In the first month of FY 2022-23, goods worth $3.98 billion have been exported. According to Export Promotion Bureau (EPB) data, the country crossed the $50 billion milestone for the first time in the last FY 2021-22 with exports worth $52 billion. According to the report, readymade garments contributed the most to the growth as usual. Last month, exports in this sector were worth $3.36 billion. As such, 84.49 percent of the total exports is apparel products. And compared to July of the last financial year, the export of this product has increased by 16.61 percent. Also read: Economy needs transitional policy to overcome the crisis: Debapriya Meanwhile, according to data of the European statistical agency Eurostat, the import of clothing products from Bangladesh has increased by 44.95 percent from January to May this year. $9.58 billion worth of clothing items have been imported till this time, the report said. BB data shows, in July private credit growth of Bangladesh reached 13.96 percent to Tk 13.52 lakh crore. Bank officials say that many have taken up new projects. Many others are increasing productivity. Housing, car, and personal loans have also increased this year due to low-interest rates. In addition, the price of the dollar has increased by more than 20 percent in the last four months. Read Hope amidst forex crisis: Bangladesh received $2.03bn remittance in Aug Although in the announced monetary policy till December this year, the growth in private sector credit is targeted 13.6 percent. As a result, the monetary policy target of credit growth has already been exceeded. Despite much inflation, consumers are borrowing more. Because the loan interest rate is still around 9 percent. According to the latest data of BB, Bangladesh's inward remittance flow worths USD $2.03 billion in August. It is showing hope to ease the forex crisis through this upward trend of remittance. In July, the first month of FY 2022-23, expatriate sent $2.09 billion remittance, which was highest in last 14 months. The inward remittance flow was $1.87 billion in July and $1.81 billion in August in FY 2021-22. Md Serajul Islam, executive director and spokesperson of Bangladesh Bank (BB) told UNB that the central bank has simplified various processes to attract more remittances in banking channels. Read BB allows floating exchange rate of US dollar amid pressure The government is also extending remittance incentives as well as providing policy support. Now the dollar rate is getting higher, he said. The sector insiders said that Bangladesh’s inward remittance flow will grow more as manpower export hit a new high in the past fiscal on a post-pandemic rebound of the overseas job market. The data of the Bureau of Manpower Employment and Training (BMET) showed over 9.88 lakh workers had gone abroad in the fiscal year FY22 while this figure was 2.71 lakh in FY 21. This happens to be the highest number of annual overseas jobs in the last seven years. Officials hope the outflow of workers would increase in the current fiscal year as Malaysia is going to restart hiring manpower from the country, following a negotiated deal. Read BB moves to encourage greater flow of remittance to boost forex