Finance Minister AHM Mustafa Kamal on Wednesday said the use of foreign currency reserve to finance the development projects would help contain the country's external debt burden.
"We think, if there are any good state-sponsored projects and we finance those (from forex reserve), our (foreign) debt won't increase and the money will remain within the country," he said.
The minister was talking to the newsmen about how the forex reserve would be utilised as the government reportedly decided to use it for the development projects.
Following a virtual meeting of the cabinet committee on government purchase, he told the news briefing that the demand for money has been reduced substantially due to the Covid-19 pandemic and that is why the depositors are not getting return by keeping money in banks.
He expressed the hope that the country's forex reserve will reach US$ 50 billion by December next year from the present level of over $41 billion. "So, we are thinking in that line on how to use our foreign currency reserve," he said.
Asked whether loans will also be given from the forex reserve to the private sector projects, the minister said the Prime Minister will take the decision in this regard.
"It's her (Prime Minister) brainchild … she herself said the reserve can be used for development projects," said Mr Kamal.
Replying to another query on the country's economic progress and achievements, he said Bangladesh has made a comeback tremendously during the pandemic much earlier than many others.
"In major economic indicators, we are in better position compared to many other countries," he added.
Mr Kamal said there some reasons behind the progress that include the incentives package of nearly $14 billion, which is an unprecedented move (by the government).
"Even our critics could not imagine that the government will be able to take such a big step," he said.
Replying to another query on how his predictions on Bangladesh's economic progress become accurate in many cases, the minister said he has a god gifted capacity to see the future. "I can see what is going to happen in next 25 years, the prime minister also can see the same."
He said he worked throughout his life with numbers. "Number is my raw material, number is my working process, and also the finished products. I tell numbers after necessary checks."
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