Economic Reporter :
Two crore people will attain middle-income status in next 10 years, said Bangladesh Bank Governor Atiur Rahman on Monday.
The central bank governor made the remark while addressing an international workshop on ‘Macroeconomic Stability, Private Sector Development, and Economic Growth’ at city`s Bangabandhu International Conference Centre. Bangladesh Bank and UNDESA jointly organized the two-day long workshop.
Bangladesh is now a fertile base for massive new investments in the areas of manufacturing, infrastructure, education, and technology due to its low labour cost and geographical location, he said adding that Bangladesh Bank already adopted Strategic Plan to face the economic challenges of twenty first century.
The governor stressed the need for broader economic cooperation between Bangladesh and India for mutual benefits of the two neighbouring countries. “India is partnering with us in promoting trade and investment linkages, with much needed investments in railway and other communication infrastructure. Cooperation in this area has much further to expand and deepen, including in developing new Special Economic Zones (SEZs),” the BB governor said. The visiting World Bank (WB) vice-president and Chief economist Professor Kaushik Basu delivered a public lecture.
Dr Atiur expressed profound gratitude to Prof Kaushik, an Indian national who served Reserve Bank of India prior to take over WB assignment, for delivering the public lecture.
The BB governor said, “Besides manufacturing, major opportunities for foreign investors in Bangladesh exist also in the infrastructure sector, including gas and electricity generation, bridges, hotels and other tourism facilities, tertiary healthcare hospitals, developing land, sea, and airport facilities and so forth. Software and IT enabled services are yet another new promising area for foreign investors in Bangladesh.”
Highlighting the issue of economic cooperation between India and Bangladesh, Dr Atiur said Indo-Bangladesh relationship deserves to be taken to new heights as it was born in mutual sacrifices from both countries in 1971 and, definitely, discussion seminars and lectures like this will help carry this forward.
“I would like to express my heartfelt thanks to Professor Kaushik Basu for accepting our invitation to give a public lecture. I believe his thoughts will enrich our knowledge, and will help improve research and policymaking in the context of developing countries like Bangladesh. Let me now shed lights on some of the potential areas of economic cooperation between India and Bangladesh,” the BB governor said.
He said initiatives for realisation of the government’s Digital Bangladesh vision have brought about major improvements in high speed broadband internal and external connectivity, automation of countrywide interbank clearing and settlement, interlinking diverse settlement platforms in a National Payments Switch, establishment of Real Time Gross Settling (RTGS) and so forth have given massive boost to the country’s capabilities in IT enabled services, attracting external attention.
“Among the South Asian countries, India with her huge foreign exchange reserves and large pool of savvy entrepreneurs has by far the highest capacity of investing in her sub-regional neighbours. Despite this, Indian FDI inflows into Bangladesh remain minuscule, which is only 4.44 percent of the total FDI net inflow. So, there remain many other areas where India can invest and strengthen economic relation with Bangladesh,” he said.
“Deepening and widening of trade and economic cooperation in our region require major simplification and facilitation of customs clearance procedures in overland goods flows in the trade value chains, allowing cross-border movement of cargo laden vehicles.”
Dr Atiur said resilience of the Bangladesh economy over years amid repeated episodes of natural calamities and external shocks has provided the markets and entrepreneurs a predictable policy environment of low uncertainty.
“With steady macro and socioeconomic progress, Bangladesh has recently joined the (lower) middle income country group, and looks forward to attain the higher middle income country status by 2030 and to advanced economy status by the decade of 2040s,” he said.
Dr. Hamid Rashid, Chief, Global Economic Monitoring Unit of UNDESA, Deputy Governor Md. Abul Quasem, Chief Economist of Bangladesh Bank Dr. Biru Paksha Paul were also present.
Two crore people will attain middle-income status in next 10 years, said Bangladesh Bank Governor Atiur Rahman on Monday.
The central bank governor made the remark while addressing an international workshop on ‘Macroeconomic Stability, Private Sector Development, and Economic Growth’ at city`s Bangabandhu International Conference Centre. Bangladesh Bank and UNDESA jointly organized the two-day long workshop.
Bangladesh is now a fertile base for massive new investments in the areas of manufacturing, infrastructure, education, and technology due to its low labour cost and geographical location, he said adding that Bangladesh Bank already adopted Strategic Plan to face the economic challenges of twenty first century.
The governor stressed the need for broader economic cooperation between Bangladesh and India for mutual benefits of the two neighbouring countries. “India is partnering with us in promoting trade and investment linkages, with much needed investments in railway and other communication infrastructure. Cooperation in this area has much further to expand and deepen, including in developing new Special Economic Zones (SEZs),” the BB governor said. The visiting World Bank (WB) vice-president and Chief economist Professor Kaushik Basu delivered a public lecture.
Dr Atiur expressed profound gratitude to Prof Kaushik, an Indian national who served Reserve Bank of India prior to take over WB assignment, for delivering the public lecture.
The BB governor said, “Besides manufacturing, major opportunities for foreign investors in Bangladesh exist also in the infrastructure sector, including gas and electricity generation, bridges, hotels and other tourism facilities, tertiary healthcare hospitals, developing land, sea, and airport facilities and so forth. Software and IT enabled services are yet another new promising area for foreign investors in Bangladesh.”
Highlighting the issue of economic cooperation between India and Bangladesh, Dr Atiur said Indo-Bangladesh relationship deserves to be taken to new heights as it was born in mutual sacrifices from both countries in 1971 and, definitely, discussion seminars and lectures like this will help carry this forward.
“I would like to express my heartfelt thanks to Professor Kaushik Basu for accepting our invitation to give a public lecture. I believe his thoughts will enrich our knowledge, and will help improve research and policymaking in the context of developing countries like Bangladesh. Let me now shed lights on some of the potential areas of economic cooperation between India and Bangladesh,” the BB governor said.
He said initiatives for realisation of the government’s Digital Bangladesh vision have brought about major improvements in high speed broadband internal and external connectivity, automation of countrywide interbank clearing and settlement, interlinking diverse settlement platforms in a National Payments Switch, establishment of Real Time Gross Settling (RTGS) and so forth have given massive boost to the country’s capabilities in IT enabled services, attracting external attention.
“Among the South Asian countries, India with her huge foreign exchange reserves and large pool of savvy entrepreneurs has by far the highest capacity of investing in her sub-regional neighbours. Despite this, Indian FDI inflows into Bangladesh remain minuscule, which is only 4.44 percent of the total FDI net inflow. So, there remain many other areas where India can invest and strengthen economic relation with Bangladesh,” he said.
“Deepening and widening of trade and economic cooperation in our region require major simplification and facilitation of customs clearance procedures in overland goods flows in the trade value chains, allowing cross-border movement of cargo laden vehicles.”
Dr Atiur said resilience of the Bangladesh economy over years amid repeated episodes of natural calamities and external shocks has provided the markets and entrepreneurs a predictable policy environment of low uncertainty.
“With steady macro and socioeconomic progress, Bangladesh has recently joined the (lower) middle income country group, and looks forward to attain the higher middle income country status by 2030 and to advanced economy status by the decade of 2040s,” he said.
Dr. Hamid Rashid, Chief, Global Economic Monitoring Unit of UNDESA, Deputy Governor Md. Abul Quasem, Chief Economist of Bangladesh Bank Dr. Biru Paksha Paul were also present.
