No new private banks soon: Muhith
Wednesday, 16 June 2010
FE Report
Finance Minister AMA Muhith told the parliament Tuesday that the government had no plan to increase the number of banks and non-banking financial institutions at the moment.
In reply to a question from treasury bench member Begum Meher Afroze, the finance minister quoting a recent Bangladesh Bank report said the size of the domestic economy does not permit any more bank or non-banking financial institution.
He said, "Global recession has hit the banking sector and before any financial sector expansion, the recovery of the global economy is necessary."
Bangladesh Bank has invested a part of its reserve in offshore units of different banks and provided credit to exporters under export development scheme, the finance minister said in reply to another question of Jatiya Party MP Begum Salma Islam.
In response to another question, he said on June 9 this year, the country had a foreign reserve of $10.26 billion.
The finance minister in reply to another question informed the parliament that expatriate welfare bank would come into being very soon.
"The government has no plan make the import of cotton from a neighbouring country duty-free", he said.
Mr Muhith said National Board of Revenue is going to strengthen its intelligence unit to prevent tax dodging in the country.
"The government will also expand tax net and modernize income tax administration to earn more revenue," he said.
The NBR has introduced simple tax return to facilitate tax payment, he added.
About the PSI companies, the finance minister informed the House that the government would take action against the PSI companies if they were found involved in any irregularities.
The finance minister said Bangladesh repaid $1.11 billion principal and interest of foreign loans during January 2009 to April 2010.
In reply to a question from ruling party MP Gias Uddin Ahmed, post and telecom minister Rajiuddin Ahmed Raju said different ministries and government agencies including the offices of the President and Prime Minister has unpaid telephone bills amounting to over Tk 588 million until April last.
Finance Minister AMA Muhith told the parliament Tuesday that the government had no plan to increase the number of banks and non-banking financial institutions at the moment.
In reply to a question from treasury bench member Begum Meher Afroze, the finance minister quoting a recent Bangladesh Bank report said the size of the domestic economy does not permit any more bank or non-banking financial institution.
He said, "Global recession has hit the banking sector and before any financial sector expansion, the recovery of the global economy is necessary."
Bangladesh Bank has invested a part of its reserve in offshore units of different banks and provided credit to exporters under export development scheme, the finance minister said in reply to another question of Jatiya Party MP Begum Salma Islam.
In response to another question, he said on June 9 this year, the country had a foreign reserve of $10.26 billion.
The finance minister in reply to another question informed the parliament that expatriate welfare bank would come into being very soon.
"The government has no plan make the import of cotton from a neighbouring country duty-free", he said.
Mr Muhith said National Board of Revenue is going to strengthen its intelligence unit to prevent tax dodging in the country.
"The government will also expand tax net and modernize income tax administration to earn more revenue," he said.
The NBR has introduced simple tax return to facilitate tax payment, he added.
About the PSI companies, the finance minister informed the House that the government would take action against the PSI companies if they were found involved in any irregularities.
The finance minister said Bangladesh repaid $1.11 billion principal and interest of foreign loans during January 2009 to April 2010.
In reply to a question from ruling party MP Gias Uddin Ahmed, post and telecom minister Rajiuddin Ahmed Raju said different ministries and government agencies including the offices of the President and Prime Minister has unpaid telephone bills amounting to over Tk 588 million until April last.