Ministries Asked to Submit Bills and Release Funds by June 25th

Bangladesh has taken a significant step towards preserving foreign currency reserves by making the first payment in the local currency for a major infrastructure project. The project involves constructing a 24-kilometre elevated expressway connecting Dhaka to Ashulia, with China providing 85% of the project's cost as a loan.

With 49 out of 153 power plants in Bangladesh operating at full capacity, the country is grappling with ongoing power outages exacerbated by scorching summer temperatures. Maintenance and fuel shortages have forced the closure of 53 additional plants, totaling 4,930 megawatts of capacity.

In a recent Executive Committee of the National Economic Council (Ecnec) meeting, nine out of eighteen approved projects underwent cost revisions, indicating a trend towards the end of the financial year. The original cost of these projects, amounting to Tk9,308 crore, has now risen to Tk23,978 crore.

The draft Income Tax Law 2023 in Bangladesh proposes significant amendments to outdated tax laws, aiming to make them more user-friendly for individuals and businesses. However, it appears to favor the whitening of black money, disregarding the concerns of honest taxpayers.

Bangladesh's garment exports reached $12.25 billion in Q1 2023, while raw material imports for the sector were $3.54 billion, leading to a value addition of $8.70 billion or 71%, the highest in the country's history.

Bangladesh's budget deficit projection for FY24 could face challenges if economic growth falls short of expectations, warns a report by Fitch Ratings. Historically, fiscal outcomes in Bangladesh have deviated from budget forecasts due to underspending against targets. Revised figures for FY23 showed a budget deficit of 5.1% of GDP, lower than the initial target of 5.5%.