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Budget reactions

DSE hails budget for economic dev plan

FE REPORT | June 11, 2022 00:00:00

The Dhaka Stock Exchange (DSE) welcomed the proposed budget for the fiscal year (FY) 2022-23 as a 'far-reaching plan' for the country's overall economic development.

Finance Minister A H M Mustafa Kamal on Thursday unveiled the national budget worth Tk 6.78 trillion for the FY 23.

The prime bourse expressed its gratitude to Prime Minister Sheikh Hasina and the finance minister, as the proposed budget gave special focus on controlling inflation and developing agriculture, health, human resources and education sectors.

The DSE appreciated the initiatives offered for boosting investment, generating employment, and returning to the path of development - leaving behind the Covid-19 pandemic impact.

The proposed budget was discussed in a meeting of the DSE board of directors - shortly after it was unveiled on Thursday evening.

In his budget speech, the finance minister also unveiled a plan to utilise the economic potentials of the Padma Bridge, which is the manifestation of a far-reaching plan for the country's overall economic development, said a press release of the prime bourse.

The DSE congratulated the budget proposal for the well-planned development planning and formulating the strategy of mobilising the economy through development and manufacturing activities.

The budget proposed to cut corporate tax for the listed companies by 2.5 per cent to 20 per cent that issue shares worth more than 10 per cent of their paid-up capital through initial public offering (IPO).

"This will attract big and well reputed companies to be listed in the capital market," said the DSE release.

The tax rate would be 22.5 per cent for the listed companies that issue shares worth 10 per cent or less than 10 per cent of their paid-up capital, which would ensure sustainable development of the capital market.

The DSE hailed some measures taken in the budget, including special emphasis for developing, expanding and modernising the capital market.

The bourse believed that the government's positive attitude towards the market would enable it to play a more effective role by accelerating the pace of industrialisation in the country.

"The government is taking and implementing various reform measures for internationalising the capital market."

To take the country's stock market to an international level, the government is working to introduce various instruments in the market, such as treasury bonds, Sukuk, derivatives, alternative trading board and ETFs, as per expectation of the investors.

The DSE congratulated the finance minister further for upholding last year's market-friendly policies in the proposed budget for making the stock exchange profitable.

The capital market is the biggest source of long-term financing for the country's development. Therefore, through the proposed budget, the market can help move the government towards its desired goals, the bourse opined.

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