Govt Lifts Investment Ceiling on WED Bonds

The government has removed the maximum investment ceiling on Wage Earner Development (WED) bonds to encourage expatriates to invest in Bangladesh. A recent circular from the Internal Resources Division (IRD) also allows expatriate mariners, pilots, and cabin crew employed by foreign companies to invest in WED bonds, effective December 1, 2024.

Initial findings from the White Paper on the State of Bangladesh's Economy reveal extensive financial irregularities, particularly in data handling, costs, and transparency within sectors like energy and infrastructure. 

The implementation of Bangladesh's Annual Development Programme (ADP) fell to a record low of 4.75% in Q1 FY25, with Tk 13,215 crore spent against a Tk 2.78 lakh crore allocation. This decline is attributed to ongoing political turmoil, including the interim government's review of projects initiated by the previous administration, which has resulted in reduced funding for non-critical projects.

Government borrowing from banks surged by Tk 6,568 crore from July 1 to September 15 in FY2024-25, contrasting with a net reduction of Tk 8,939 crore during the same period last year. Despite repaying Tk 29,272 crore, the increased reliance on domestic bank financing has driven the net outstanding borrowing to Tk 4.81 lakh crore, a 24% year-on-year rise.

Denmark is reinforcing its commitment to support Bangladesh's sustainable economic growth, focusing on renewable energy, shipping, and logistics. At a recent panel discussion in Dhaka, Danish Ambassador Christian Brix Moller emphasized the need for a conducive business environment to attract foreign investment and unlock the country's untapped potential.