Indian LoC funding to continue, Pakistan interested in business


FHM HUMAYAN KABIR | Published: September 10, 2024 23:28:20


Indian LoC funding to continue, Pakistan interested in business


Indian line of credit (LoC) funding for Bangladesh's development projects will continue while Pakistan is also interested in doing business here, envoys of the two rival neighbours said during discussions with interim government's finance adviser.
After the separate meetings in Dhaka on Tuesday, Finance and Commerce Adviser Dr Salehuddin Ahmed said the present post-uprising government would continue economic and trade cooperation with both India and Pakistan as both the countries are close neighbours of Bangladesh.
During a call on him by Indian High Commissioner in Bangladesh Pranay Verma, the adviser said the Indian LoC-supported projects would continue as those are large in size and important too.
After another meeting with Pakistan High Commissioner Syed Ahmed Maroof, Mr Ahmed put emphasis on expediting the existing trade and commercial relations between Bangladesh and Pakistan which had long remained stagnant.
The Pak diplomat expressed their willingness to import jute from Bangladesh and launch Dhaka-Karachi direct flight soon.
"For the betterment of the country, we will even undertake some more projects. India will support improving science and research," Mr Ahmed said after the meeting with Indian High Commissioner, Pranay Verma.
The finance adviser also called the Indian High Commissioner for investing in Bangladesh as the country is very good for investment and cooperation.


Some 25 projects are still going on with the support from three Indian LoCs, confirmed for Bangladesh between the year of 2010 and 2017.
The government undertook 42 projects under the three LoCs, of which only 16-17 have been completed and the remaining some 25-26 projects are at various stages of implementation.
Bangladesh signed the first LoC agreement worth US$862 million with India in August 2010 to finance some 15 projects, mostly for railway sector.
Also signed was the second LoC totalling $2.0 billion in March 2016 and the third one worth $4.5 billion in March 2017.
Dr Salehuddin thanked the Indian government for their continued cooperation and they were looking to an enhanced cooperation.
Replying to another question, he said the issues regarding the implementation and disbursement of the three Indian LoC projects were discussed in the meeting.
Since India is a next-door neighbour, Dr Salehuddin said, both New Delhi and Dhaka have many potential areas of economic cooperation and trade.
Regarding the bilateral trade volume, the finance adviser said there is a bilateral trade deficit that tilts in favour of India. "But the issue will be resolved."
The Finance Adviser told reporters that the Indian High Commissioner assured him of encouraging more quality export of Bangladeshi products to India and that "should be a win-win situation for both the countries".
High Commissioner Pranay Verma told journalists that India did not stop funding any of its LoC projects in Bangladesh since those are big projects.
"Those projects are going on, and they are huge projects located at different sites. The contractors will be coming back to start the projects," he added.
Replying to a question on the Indian government's engagement with Bangladesh's interim government, Pranay said, "We are very closely engaging with the government, and my meeting with the adviser is proof of that."
The High Commissioner said the issue of project implementation would be resolved through mutual cooperation, and the Indian side's approach is positive.
He briefed the adviser about the progress made on some India-funded projects, saying that the approach was "to move forward".
Dr Salehuddin, regarding the meeting with the Pakistan High Commissioner, said he suggested Pakistan to engage with Bangladesh's private sector rather than relying only on government-to-government system.
He told reporters that the Pakistan High Commissioner had shown their keen interest in Bangladesh's jute products since it is very attractive having a wide variation of products.
Pakistan will also try to relaunch direct flights like Dhaka-Karachi one if that is commercially viable, the adviser added.
On Pakistan's willingness to start economic cooperation, he said, "It can't be open or launch quickly ….we can't start immediately, rather we have to make some homework which is also similar to them."
After the meeting, Pakistan High Commissioner Syed Ahmed Maroof told reporters that they had a wonderful discussion regarding the economic and trade relations.
"We discussed every aspect of that and we are looking forward to having a greater and in-depth economic and trade cooperation as well as interaction with Bangladesh in the coming years," he added.
In another meeting at the Advisers Council on Economic Affairs on Tuesday, the government decided to organise a commemorative meeting on September 14 for the martyrs who died during the protests against the Hasina government.
"We will organize a commemoration meeting for which some Tk 50 million is approved for spending to arrange the next programme," Dr Ahmed said.
The government at the separate meeting on Advisers Council Committee on Government Purchase on Tuesday approved two proposals for procuring some 25,000 metric tonnes (MTs) of rock phosphate and 40,000MTs of MoP fertilizer to meet the growing demand of the country.
Chaired by Dr Salehuddin Ahmed, the meeting approved purchase of the 25,000MTs of rock phosphate from the TSPCL.
Besides, 40,000MTs of MOP fertilizer would be procured from Canadian Commercial Corporation under the fifth lot for Bangladesh Agricultural Development Corporation (BADC).
Asked about the country's power and energy situation, Dr Salehuddin said the government does not hinder the proposals related to power and energy as the proposals for procuring LNG alongside fertilizer and pest0icides are important.
"Those proposals are now being cleared quickly by the Economic Affairs Committee and Purchase Committee, no matter whatever the constraints are," he added.
Meanwhile, at an NBR meet on the day, Finance Adviser Dr Ahmed said an integrated system is necessary within the government to prevent loan defaulters from accessing basic public services.
"If such a system were in place, defaulters would be unable to purchase fuel from stations or use essential services," he said.
Dr Ahmed praised the recent initiative by the National Board of Revenue (NBR) to introduce an upgraded online tax-return system.
During a press conference at the NBR, Dr Ahmed urged tax officials to focus on chasing only those eligible for tax payments rather than forcing all people to pay taxes.
He emphasized the importance of simplifying the audit system and addressing grievances to improve taxpayer services.
The NBR organized the press conference on its premises to raise awareness about the newly introduced online tax-return system.
Speaking at the event, NBR Chairman Abdur Rahman Khan said the new online return system is integrated with the car-registration and savings-certificate portals allowing taxpayers to automatically report taxes paid at the source in these areas.
Additionally, government employees who pay taxes at the source on their salaries will be able to automatically adjust these payments in their tax returns.
"There would be no scope to print the online tax return and submit it to tax officials," he noted, adding that both manual and online tax-return-submission options will remain available.
Starting in July 2024, the online system will be available round the year for taxpayers. The e-Return system was developed with the assistance of Synesis IT.
"We will soon integrate various automation steps to reach the ultimate goal of full automation," he said.
NBR member Alamgir Hossain announced that a helpline call center will be operational starting next Thursday to assist taxpayers with submitting their online tax returns. The call centre 09643-71-71-71
He also acknowledged the European Union's support in automating the tax-return system.
Dr Salehuddin Ahmed also stressed that middlemen's involvement in tax payments must be eliminated so that taxpayers can pay their dues without hassle.
"We cannot run the country solely on foreign loans and the sale of savings certificates. All eligible citizens must pay their taxes," he added, while acknowledging the potential for technical issues, which would need to be addressed.
Asked about discriminatory tax measures, Dr Salehuddin noted that reform initiatives have been launched to tackle these issues.
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