BD to get WB’s $250m budgetary aid in June
Bangladesh is likely to receive US$250 million budgetary support from the World Bank (WB), as the Washington-based lender might approve the assistance next week, officials said on Monday. The WB board, in its upcoming meeting on June 19, might endorse second instalment of the Development Policy Credit (DPC), amounting to $250 million, for Bangladesh. After one and a half years, the government is set to receive instalment of the WB’s $750-million DPC for Bangladesh amid severe impact of the deadly coronavirus pandemic on the national economy. On January 9 last year, the WB confirmed first instalment of the assured DPC, amounting to $250 million, for Bangladesh. Its board endorsed the credit instalment on December 12, 2018. According to the WB Dhaka office, the DPC-II, which is basically a budgetary support for Bangladesh, is expected to be placed in its executive board meeting in Washington DC on June 19. “Upon approval, we expect disbursement of the $250 million budgetary support on an emergency basis to facilitate the national budget expenditure,” said an official of the Economic Relations Division (ERD).
Cabinet okays draft law to scrap BB governor’s age limit
The cabinet approved in principle Monday the draft of “The Bangladesh Bank (Amendment) Act, 2020” by abolishing the ‘proviso’ of the 65-year age limit for the governor of the central bank.The cabinet secretary said an experienced person is appointed in the financial sector as the governor. “But it’s not possible to appoint an efficient and experienced person in the financial sector after his/her 65 years of age as the current law has fixed the highest age limit at 65 years. Islam said even it’s not possible to reappoint an experienced person who performed the responsibility of the governor at the Bangladesh Bank. In this connection, he referred that the highest age limit of the governor of central bank of neighbouring countries of India and Sri Lanka has not been mentioned.
Govt asks BGMEA to stop termination of workers
The government has asked apparel sector trade bodies to take measures to stop termination of workers to avoid any possible labour unrest amid the coronavirus pandemic. The government’s instructions came after 67 factories had terminated a total of 17,579 workers,althoughatripartite meeting decided that no worker or factory would be laid off during the pandemic especially before Eid-ul-Fitr.Citing DIFE’s 23 zonal offices report prepared after Eid, the letter said a total of 17,579 workers were terminated at labour intensive industrial zone of Dhaka, Gazipur, Narayanganj and Chattogram. As a result, 2,450 workers from Tanaz Fashions and Viyellatex garments on June 01 blocked the Dhaka-Mymensingh highway which was resolved by law enforcement agencies and DIFE. They said although the owners got a Tk 500 billion stimulus package with two per cent service charge from the government, many workers who joined their duty did not get their full salaries and bonuses. The workers in the RMG sector have now been passing tough times due to the outbreak of Covid-19 in the country.
BEA proposes Tk 13.97t alternative budget
Bangladesh Economic Association (BEA), a professional body of economists, on Monday proposed an alternative budget amounting to Tk 13.97 trillion or 2.47 times higher than the existing budget. The size of the alternative budget is equivalent to 55 per cent of gross domestic product (GDP). Revenue collection has been estimated at Tk 12.7 trillion or 91 per cent while the remaining 9.0 per cent as deficit.DrBarkat said of theTk 1.35 trillion deficit, Tk 700 billion will come from savings instruments while the remaining amount may come from reissuance of savings certificates and launching new savings instruments through public- private partnership.The education budget should be at least 5.0 per cent of the GDP. During the 66-day lockdown, he said, a total of 36 million people lost their jobs. The status of the rich, however, remained unchanged at 17 million, he said, adding that there was a significant change in classes of the people during the lockdown.Prof Barkat said the Gini coefficient, a popular measure of income inequality, rose to 0.635 against 0.48 earlier. The rise in 0-1.0 scale implies higher income inequality in the society. According to the Palma ratio, he said, an alternative to the Gini coefficient shows 7.53 against 2.92 previously.
Dhaka Bank launches ‘Account from Home’ platform
Dhaka Bank Limited has introduced Online Account Opening platform “Account from Home”. Using this platform prospective customers will enjoy the option of submitting their information from the comfort of their homes by filling in the simple account opening form. To access this the customers will just need to click the following link to open their account.Dhaka Bank nominated agent will deliver welcome pack at customers’ doorstep (maintaining health and safety standard) including free debit card and cheque book and collect documents with their signature.
Biman to operate charter flight on Dhaka-Rome route
Biman Bangladesh Airlines will operate a charter flight from Dhaka to Rome from June 12 (Friday), reports UNB. As per Bangladesh government directives, the chartered flight will carry stranded Bangladeshi nationals, who are holding valid resident cards of Italy as per list certified by the Ministry of Foreign Affairs and Embassy of Italy in Dhaka.Biman has published a list of 265 passengers, and directed them to collect tickets from its sales outlets in Dhaka, Chattogram and Sylhet.
Safety net outlay to hit 3pc of GDP for first time
The government may allocate Tk 95,155 crore for the safety net programmes in the next fiscal year as it looks to broaden the number of beneficiaries to support those who are struggling to make ends meet after the coronavirus outbreak.The allocation would be 27.95 per cent higher than Tk 74,367 crore set aside in the current fiscal year and 3 per cent of the gross domestic product of Bangladesh, according to an official of the finance ministry. The allocation was 2.58 per cent of the GDP in FY2019-20.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$38.54 ||↑0.35||↑0.92%|
|Crude Oil (Brent)||$ 41.09 ||↑0.29||↑0.71%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.3655|
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|EUR 1||BDT 94.1540|
|INR 1||BDT 1.10610|
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