Forex reserves go past $20 billion mark after loans from IMF, ADB

Bangladesh’s foreign currency reserves rose to $20.41 billion today after $1.09 billion in loans from two global lenders were added to the central bank’s account. Before the loans from the International Monetary Fund (IMF) and the Asian Development Bank (ADB) were credited to the BB account on Thursday, the reserves stood at $19.17 billion. Of the sum, $689 million came from the IMF and $400 million from the ADB. Amid higher import bills against moderate remittance and export receipts, the gross international reserves of Bangladesh slipped to $24.3 billion in 2022-23 from $36 billion in 2019-20. It stood at $46.4 billion in 2020-21, the highest on record. The World Bank is considering a $500 million budget support in the current fiscal year under two programmes.

Source: https://www.thedailystar.net/business/economy/news/forex-reserves-go-past-20-billion-mark-after-loans-imf-adb-3496491

Bangladesh eyes $1b in wool garments export with Australia partnership

Bangladesh aims to boost its annual high-end woollen garment exports tenfold to $1 billion in the next five years as Australia, one of the world’s largest wool producers, is considering Bangladesh as a potential alternative to China for its wool processing. According to entrepreneurs, Bangladesh currently imports a minimal quantity of woollen fabric from China, Italy or England and produces high-value suits, shirts, pants, and knitwear sweaters for export. However, due to the absence of domestic sources of raw materials – yarn and fabric, the country is unable to fully tap into its potential in the $17 billion market, dominated mainly by Australia and China. According to BTMA sources, the current global wool fibre market size is over $30 billion. However, various international research sites suggest a market size of $17 billion, with predictions that it may reach close to $25 billion by 2030, driven by a compound annual growth rate (CAGR) of 5.5%.

Source: https://www.tbsnews.net/economy/rmg/bangladesh-eyes-1b-wool-garments-export-australia-partnership-757918

NBR reduces tax on provident fund to 15%

The National Board of Revenue (NBR) has reduced the tax on the income generated by provident and other pension funds to 15% from 27.5% in the current financial year. The tax administration issued a notification to this effect on 15^th December. Earlier on 6 December, the NBR issued a Statutory Regulatory Order (SRO), which was published on 14^th December. According to the order, tax on income from provident fund, gratuity fund, superannuation fund, and pension fund has been reduced to 15%. Budget of the current fiscal imposed a 27.5% tax on the income generated by these funds, sparking debate among job holders across the country, according to industry insiders.

Source: https://www.tbsnews.net/economy/nbr-reduces-tax-provident-fund-15-757830