India Grants Bangladesh 20 Broad Gauge Locomotives

The Bangladesh Bank (BB) has instructed banks to expedite the payment of outstanding dues to foreign airlines, aiming to resolve the issue and alleviate the ongoing dollar crisis. The BB spokesperson clarified that the actual volume of dues amounted to $177.79 million, contrary to media reports of $214 million.

The proposed budget for the 2023-24 fiscal year seeks to allocate Tk 6,597 crore to the Civil Aviation and Tourism Ministry, with the goal of modernizing the aviation sector and expanding the tourism industry to international standards. This allocation represents an increase of 17.2 percent, amounting to Tk 969 crore more than the previous fiscal year.

Airfares from Bangladesh to the Middle East and other destinations have surged, with airlines charging the highest fares compared to other Asian countries. Factors contributing to the escalating fares include the dollar crisis, a thriving black market for tickets, and inadequate supervision. Flight ticket prices have remained high for over two years, causing concerns among travelers. Expatriates primarily blame organized syndicates for manipulating prices rather than the dollar crisis. Limited flight availability and higher taxes further contribute to increased costs.

Bangladesh Road Transport Corporation (BRTC) has initiated a project to acquire 100 electric double-decker buses from India. The proposal has been sent to the Planning Commission, with each bus priced at Tk 3.64 crore. The buses will be purchased from Switch Mobility Company, a subsidiary of Ashok Leyland, under the Indian Line of Credit. The buses' features align with the 'Switch EIV 22' model offered by Switch Mobility. However, concerns have been raised about the pricing and ambiguity surrounding the cost determination.

At least eight foreign airlines have shown keen interest in entering the lucrative Bangladesh aviation market, indicating promising business opportunities. The number of foreign airlines operating in Bangladesh is expected to exceed 40, up from the current 33, with the anticipated launch of the third terminal at Dhaka airport in October.

The government is planning to raise travel taxes for both domestic and international air passengers in an effort to boost revenue collection. Starting from the next fiscal year, domestic travelers may be required to pay a travel tax of Tk 200, while international travelers to certain destinations could face a 50% increase, with rates reaching Tk 6,000. Taxes for passengers traveling to South Asian Association for Regional Cooperation (SAARC) member countries may rise by 67% to Tk 2,000, and those traveling to the Middle East may experience a 33% increase to Tk 4,000. The current rates have remained unchanged for the past nine years.