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ADB to lend more to BD

BIA for excluding double taxation

FE Report | February 06, 2019 00:00:00

The Asian Development Bank (ADB) said on Tuesday of extending its financial support further to Bangladesh's development in future.

The Manila-based lender said it will finance more development projects in addition to the current portfolios.

ADB Country Director Manmohan Parkash said this after paying a courtesy call with Finance Minister AHM Mustafa Kamal at his office in Dhaka.

He assured the minister of the increased financial support from the ADB.

One of the largest multilateral development partners for Bangladesh over the years, the ADB made a commitment of a record $2.1 billion worth of assistance in fiscal year (FY) 2017-18.

Its aid commitment in FY 2016-17 was also $2.1 billion for different projects.

In FY '18, the ADB disbursed $1.1 billion for different projects and programmes. It was $811 million in FY '17.

Its total portfolio in Bangladesh is so far nearly $10 billion. It is also providing loans and grants for 54 ongoing projects here.

After the meeting, Mr Kamal said he requested the ADB to extend its support as the new government wants to continue its development work.

"Their (ADB's) support for the ongoing projects will be going on. We'll also get its support in new areas in future," he told the media.

Meanwhile, Mr Parkash told reporters that the ADB will work with Bangladesh closely.

"Bangladesh's macro-economy is performing well. The ADB will continue its support for Bangladesh's economy to grow further," he said.


The Bangladesh Insurance Association (BIA) leaders also met Mr Kamal the same day and demanded some tax and fiscal measures like exclusion of double taxation.

They sought withdrawal of 5.0 per cent gain tax from policyholders of insurance companies as it is discouraging opening of policy by potential customers.

After the meeting, BIA President Sheikh Kabir Hossain spoke of handing some demands in writing to the minister for the development of the insurance sector.

The minister assured them of sit with stakeholders about their demands shortly, he said.

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