Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Sunday, June 3, 2018 11:34:03 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Money laundering may accelerate ahead of election

Continuous bad performance of banking sector, worries

Share your thought
Post a comment »
Read all () »

Staff Reporter :
The national economy is losing macroeconomic cohesion said the Center for Policy Dialogue (CPD) at a presentation on Sunday. It also pointed at huge amount of money being laundered from the country cover of fake import business. 
It fears that money laundering may further grow ahead of election. The other malice is the big budget for mega projects the CPD economists pointed out saying the cost of 1 KM road building in Bangladesh is more that what it costs in New York. Cost of mega projects are also draining money several times more than real project value. 
The biggest worries are arising from the fact the external balance is rapidly deteriorating as imports bills are soaring over export earning and remittances. CPD figures shows that import cost increased by 24.4 percent over the ongoing fiscal 2017-18 as against a rise by 17.4 percent in remittance and 4.4 percent in export earnings.
Such mismatch is creating threats to macroeonomic stability, CPD said calling for remedial measures to stop fake invoicing and payment of import bills which are facilitating money laundering from the country.
CPD Distinguished Fellow Dr. Debapryia Bhattacharya highlighted the issue while making presentation on `State of the Bangladesh Economy' in FY 2017-18.
It was CPD's third reading as part of its `Independent Review of Bangladesh`s Development` presented at BRAC Centre Inn in the city.
The CPD concentrated its observation mainly on three sectors of the economy-finance and banking, capital market and external economy. The main concerns came out focusing on continued deteriorating performance of the banking sector and growing imbalance in the external trade and foreign debt.
CPD Distinguished Fellow Mustafizur Rahman said non-performing loan (NPL)
now stands at 9.5 percent in Bangladesh as against two to four percent in the East Asian countries. "The most concerning is that the bad loans are increasing rapidly and the NPL is highest in Asian region," he said.  
He said the frustrating issue is that Bangladesh is not taking any effective measures in reducing the NPL while India and other countries have been continuously taking effective measures. Debapryia Bhattacharya said banking sector in Bangladesh is like an orphan in the
hands of powerful people and it needs quick remedial measures. It suggested constituting a commission to bring reforms.
CPD criticized taking costly very costly foreign loans which may become huge burden at the end. It said many mega projects being implemented with foreign debt will put up pressure on foreign exchange.
Dr. Debapryia said the country`s revenue collection will experience a deficit of about Tk 50,000 crore in the current fiscal 2017-18. He said the main challenge of the government in the coming budget will be increasing the tax-GDP ratio.
Criticising the government`s move to lower the corporate tax, the CPD said no country could be able to attract more foreign investment alone by such measures. The entire businesses environment must be simplified to achieve the goals.
It said the government should take steps to realize the revenue now stuck up in the court case over disputes on taxes. There should be steps for outside court settlement system to resolve such disputes to release the stuck-fund, said the CPD.
The think tank body also express grave concern over the government`s increasing dependence on borrowing from saving instruments like NSD.
It said due to borrowing from NSD, the government will have to pay Tk 32,000 crore as interest in the current fiscal.
The CPD observed that the saving certificates are sometimes misused as many rich people buy it for higher profit. CPD Executive Director Dr. Fahmida Khatun and Director Research Dr. Golam Moazzem were also present at the function.

Add Rate

News Archive

Inside The New Nation

Editorial »

Intentional delay of ACC to finish probe of Hallmark loan scam with Sonali Bank

THE intentional delay to complete the Anti-Corruption Commission (ACC) probe of Hallmark Group loan scam with Sonali Bank in six years makes it clear to the citizens that the ACC is not interested to settle financial crimes but is rather being used as a political arm of the government. The ...

Football »

Argentina`s Lionel Messi (center left) and Ever Banega take part in a team training session at the Sports Center FC Barcelona Joan Gamper, in Sant Joan Despi, Spain on Saturday. Israel will play against Argentina next Saturday (June 9) in a friendly soccer match.

Entertainment »

Dia Mirza on playing Maanayata Dutt in Sanju

Dia Mirza and Sanjay Dutt have collaborated several times on the big screen and now she is part of a film which is based on his real life. She has played Sanjay Dutt's wife MaanayataDutt's character in Rajkumar Hirani's Sanju. Being a co-star, Dia knew Sanjay but when she heard ...

City »

Bangladesh Jatiyatabadi Chhatra Dal, Dhaka University staged a demonstration at Shishu Park area in the city on Saturday demanding release of BNP Chairperson Begum Khaleda Zia.

International »

Russian pilot found alive 30 years after shot down in Afghanistan

AFP, Moscow :A Russian pilot who was missing presumed dead after his plane was shot down three decades ago during the Soviet intervention in Afghanistan has been found alive and wants to come home, Russian military veterans said Friday."He is still alive. It's very astonishing. Now he needs help," the ...

Back Page »

For sound body

Abdul Muqit Chowdhury :A healthy person is an asset in society. Fasting is advantageous from the viewpoint of health and hygiene. Medical Science has acknowledged many benefits of fasting. Firstly, it is an effective treatment for psychological disorders by strengthening one's conviction of welfare activities. Nurturing resistance to face hardship ...

Editorial »

Drug drive: Ordinary ones are implicated, kingpins stay safe

NEWS media reported that police in Chattogram implicated a 60-year man, Samar Krishna Chowdhury, in two cases related to narcotics and arms recovery, after being influenced by a local expatriate man. Luckily, the sexagenarian escaped the sure death in crossfire, alias firing by law enforcers without trial, as his family ...

Entertainment »

Deepika Padukone`s Naina clocks 5 years in Bollywood

Deepika Padukone presented one of the most loved characters in the recent years with Naina from Yeh Jawani Hai Deewani. As the film clocked 5 years yesterday, fans took to Twitter to express their love for their beloved actress. The simple and sincere girl who discovers the fun side of ...

City »

Barrister Mainul Hosein along with journalists and other staff of the New Nation and Weekly Robbar offering munajat at a Milad and Doa Mahfil marking the 49th death anniversary of veteran journalist Tafazzal Hossain Manik Mia held at Manik Mia Foundation auditorium, Ittefaq Bhaban in the city on Friday.


International »

After embassy move, Trump weighs Jerusalem consulate changes

AP, Washington :President Donald Trump is considering giving U.S. Ambassador to Israel David Friedman more authority over the U.S. outpost that handles Palestinian affairs, five U.S. officials said, a shift that could further dampen Palestinian hopes for an independent state.Any move to downgrade the autonomy of the U.S. Consulate General ...

International »

Spanish Socialist Sanchez succeeds Rajoy as Prime Minister

Reuters, Madrid :Socialist Pedro Sanchez took over as Spain's prime minister on Friday, after outgoing leader Mariano Rajoy lost a parliamentary confidence vote triggered by a long-running corruption trial involving members of his center-right party. Socialist party head Sanchez becomes Spain's seventh Prime Minister since its return to democracy in ...

Editorial »

Manik Mia was a force of journalism but our journalists are happy to be party activists

TODAY, we mourn the 49th death anniversary of Tofazzal Hossain Manik Mia, the pioneer of journalism in our country, who symbolised the power of press to mobilise public awareness for freedom of speech and expression. A towering personality in the media world and founder-editor of The Daily Ittefaq -Manik Mia, ...

Sports »

A scene from the seventh round matches of the Walton International FIDE Rating Chess Tournament at Bangladesh Chess Federation hall-room on Thursday.

City »

Former Chairman of Human Rights Commission of Bangladesh Prof Dr Mizanur Rahman along with other distinguished persons at the first International Mediation Summit organised by Bangladesh International Mediation Society at a hotel in the city on Thursday.

Entertainment »

Deepika Padukone leaves for NYC for a magazine shoot

Bollywood's leading lady Deepika Padukone is on a global domination spree. After making a mark at international events, Deepika is all set to sizzle on international magazine Vogue. Deepika Padukone recently spotted at the airport taking off to New York City for the shoot of magazine Vogue. After setting the ...

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news