Govt plans to use forex reserves for big projects

The government considers borrowing from the foreign currency reserves from next fiscal year and using the amount in mega projects.

Finance Minister AMA Muhith disclosed the idea yesterday at the Bangladesh Bank remittance award distribution ceremony, held at Bangla Academy.

"Serious thoughts are being given to the idea and it can be said with certainty that a clear-cut framework will be placed in the next budget."

When the present government assumed power, the foreign currency reserves stood at $4 billion to $5 billion. Now, it has crossed the $31-billion mark, he said.

The central bank will not have to bear any risk; the government will bear it. The BB will be given a profit against the amount borrowed, he said.

The terms and conditions and the type of projects for which the amount will be used will be elaborated in the next budget.

At the event, 31 expatriate Bangladeshis and four exchange houses were given the awards. The expatriates residing in Qatar, the USA, Canada, Russia, Fiji and the UK are among the awardees, with the highest remitter living in the UAE.

The exchange houses that received the awards are based in the US, Italy and the UK.

Among the awardees, eight send their remittances to Janata Bank, four to Standard Chartered Bank, three to Sonali Bank and three to HSBC.

The expatriate Bangladeshis feel strong love for their country, Muhith said, while citing the popularity of national flag carrier, Biman Bangladesh Airlines, as a case in point.

On many occasions, the airline arrives 10 hours later than the scheduled time and the staff members misbehave with the expatriates too. "Yet, the expatriates chose to travel with Biman." Muhith mentioned the huge contribution of remittance to the economy.

And yet, the immigration and customs officials do not always behave well with the expatriate Bangladeshis, although their behaviour has improved slightly in recent times, he added.

The awardees are: Zakir Hossain (Kuwait); Md Shafique, Oliur Rahman, Syed AK Anwaruzzaman, Md Akhter Hossain, Md Selim, Zagir Hossain Chowdhury, Md Nazmul Huda, Md Azam, Abdul Wahhab, Md Shahabuddin, Md Mahtabur Rahman, Omar Faruque, Jesmine Akhter (the UAE); Md Muhibul Bari, Arif A Chowdhury, Asif A Chowdhury (the US); Abu Taher Md Amanullah (the Philippines); SM Parvez Tomal (Russia); Abu Md Zakaria (Fiji); Md Ali Reza (Canada); and Md Murshid Uzzaman (Hong Kong).

The four exchange houses that received awards are: Placid NK Corporation, National Exchange Co, SEC Money Transfer House, KMB International Money Transfer Ltd.

At present, around one crore Bangladeshis live in 160 countries and every year around 5 lakh people are going abroad, said BB Governor Fazle Kabir.

Remittances sent by expatriates are several times higher than foreign aid and foreign direct investment Bangladesh receives each year, he said.

"The remittance sent in by the expatriates has become a major pillar of the country's economy," he said, while urging the expatriates to send in their remittance through legal channels.

If the money is sent through hundi, the amount would be spent on militant activities, drugs and smuggling, Kabir added.

BB Deputy Governor SK Sur Chowdhury presided over the function, where Banking Secretary Yunusur Rahman, Janata Bank Managing Director Md Abdus Salam, Bank Asia Managing Director Arfan Ali, and Standard Chartered Chief Executive Officer for Bangladesh Abrar A Anwar also spoke.

The central bank has been giving the awards to the highest remitters since 2014.