Dhaka, Bangladesh (BBN)– Bangladesh government has planned to borrow from the country’s foreign exchange reserve to finance mega development projects for the fiscal year (FY) 2017-18.
Bangladesh’s Finance Minister AMA Muhith unveiled the plan on Tuesday while handing over the Bangladesh Bank Remittance Award 2015 to those who made outstanding contribution to the nation’s coffers of foreign currencies that surged more than US$31 billion.
“The reserve has become a big amount by now. It was US$4.0 billion when we came to power. Now it has reached $31 billion. The money needs better use, and we are thinking about it,” he said, adding: “We will take loan from you (remitters) and invest it in various projects.”
He will make an announcement to this effect in the next fiscal budget.
The central bank awarded 31 persons who played significant role in sending remittance and investing in bond in 2015.
Besides, the BB awarded four exchange houses for their positive role in remitting money to the country.
BB governor Fazle kabir urged the NRBs not to send their money through illegal channels like ‘hundi’.
He warned the NRBs that the money, which were sent trough unauthorised channels might be used for terrorist financing, smuggling and illegal drug business.
He urged the NRBs to invest their money in the country’s business sector as it was the right time to do so.
Bank and financial institutions division secretary Md Eunusur Rahman said that a worker usually spent BDT 300,000 to BDT 500,000 to go abroad, but they faced huge troubles and hassles.
‘The workers are frequently harassed at the airport to complete their migration. They are deceived by the manpower agents and employers abroad’, he said.
Md Mahatabur Rahman, who achieved award for investing in bond, said that a number of NRBs desired to invest in the country.
The government should take initiative to build a separate economic zone for the NRB investors, he said.
‘The NRBs are now investing their money in euro and dollar bonds which created a difficult situation. The government should introduce a taka bond for the NRBs’, he said.
BB deputy governor SK Sur Chowdhury presided over the meeting while Janata Bank managing director Md Abdus Salam and Standard Chartered Bank chief executive officer for Bangladesh operation Abrar Alam Anwar addressed the function.