Morning Newsflash
Thursday, April 4, 2024
IDLC-SL Research
Economy
Govt now plans to keep FY25 budget under BDT 8 lakh
crore
April 4, 2024
 The former finance minister projected that the
budget for the fiscal 2024-25 will be BDT
8,05,000 crore (USD 73.2bn). But the current
finance minister wants to downsize it to BDT
7,98,000 crore (USD 72.5bn) amid challenges in
meeting up its revenue collection target and the
government's policy to continue austerity
measures to control surging inflation.
 To reconcile income and expenditure, officials at
the Finance Division are setting targets to reduce
borrowing from foreign sources while increasing
loans at higher interest rates from banks and
additional borrowing from savings certificates.
From: https://www.tbsnews.net/economy/govt-now-plans-keep-fy25-
budget-under-tk8-lakh-crore-amid-challenges-822406
Financial account deficit exceeds USD 8b
April 4, 2024
 According to the Bangladesh Bank, the financial
account deficit amounted to USD 8.36 billion at
the end of February, reflecting an increase of
USD 574 million from January. This figure
contrasts with a USD 2.32 billion deficit in the
equivalent period of the last fiscal year.
From: https://www.tbsnews.net/economy/financial-account-deficit-
exceeds-8b-822431
IMF stresses meeting forex reserves target to get third
tranche of USD 4.7b loan
April 4, 2024
 The global lender upheld its stand during a
meeting with Bangladesh Bank officials today (3
April). The IMF team is visiting Bangladesh to
assess the financial outlook before releasing the
third instalment of the USD 4.7 billion loan.
 As per the conditions of the loan from the IMF, it
was set as a target to hold USD 19.26 billion in
reserves in March 2024. But actual reserves are
less than USD 16 billion.
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From: https://www.tbsnews.net/economy/imf-stresses-meeting-forex-
reserves-target-get-third-tranche-47b-loan-822311
PM likely to visit India in June, China in July
April 4, 2024
 Prime Minister Sheikh Hasina will visit New Delhi
after India's election, said Foreign Minister Dr
Hasan Mahmud.
 The prime minister was scheduled to visit India in
the last week of June, as elections in India will be
held throughout May. The neighbouring country
is set to form a new government on June 4.
 Prime Minister Sheikh Hasina is also likely to visit
China in July as she received an invitation from
Chinese Ambassador to Bangladesh Yao Wen,
according to PM's Speech Writer Md Nazrul
Islam.
From: https://today.thefinancialexpress.com.bd/first-page/pm-likely-to-
visit-india-in-june-china-in-july-1712167295
Fuel & Power
Govt to procure 3 cargoes LNG, 1.60cr litres edible oil
April 4, 2024
 The government today (3 April) approved
separate proposals for procuring some 3 cargoes
of LNG, 1.60 crore litres of edible oil, 30,000
tonnes of fertiliser and 10,000 tonnes of lentil to
meet the growing demand of the country.
 The government would procure one cargo LNG
from M/S Vitol Asia Pte Ltd, Singapore at a cost
of around BDT 418.59 crore (USD 38.1mn), one
cargo LNG from M/S Total Energies Gas and
Power Ltd Switzerland at a cost of around BDT
427.67 crore (USD 38.9mn)while another one
cargo LNG would be procured from M/S Gunvor
Singapore Pte Ltd, Singapore with around BDT
410.65 crore (USD 37.3mn).
From: https://www.tbsnews.net/economy/govt-procure-3-cargoes-lng-
160cr-litres-edible-oil-822141
Bangladesh govt reduces LPG price by BDT 3.34 per kg
April 4, 2024
 The Bangladesh Energy Regulatory Commission
on Wednesday lowered the price of liquefied
petroleum gas by BDT 3.34 per kg, setting the
new rate at BDT 120.18 per kg, down from
previous BDT 123.52.
 This price change will be effective from 6:00pm
on Wednesday, indicating a decrease in
household and commercial expenses.
From: https://www.newagebd.net/article/229435/bangladesh-govt-
reduces-lpg-price-by-tk-334-per-kg
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Morning Newsflash
Thursday, April 4, 2024
IDLC-SL Research

 The unit will identify whether defaulting

borrowers (individuals and institutions) are willful
Banking & NBFI defaulters, as per a central bank notice.
WB criticises tax provision on legalising black money  If a defaulter is identified to be a willful defaulter
April 4, 2024 as per the Finance Companies Act 2023, the
concerned borrower will get 14 working days to
present their statement on the issue.

From: https://www.tbsnews.net/economy/banking/associate-firms-can-
take-loans-if-group-found-not-wilful-defaulter-822366

https://www.thedailystar.net/business/economy/news/nbfis-asked-form-
willful-defaulters-identification-unit-april-30-3581256

 World Bank has criticised an existing government

scope for legalising undisclosed wealth through
investments, saying such policies demotivate
honest and regular taxpayers and encourage tax
evaders to continue with their misdeeds.
 The Washington-based lender in its Bangladesh
Development Update published said that these
policies have failed to earn a significant amount
of revenue.

From: https://www.tbsnews.net/economy/banking/bangladesh-bank-sells-
gold-worth-tk18-crore-first-auction-16yrs-822276

Bangladesh Bank sells gold worth BDT 18 crore (USD

1.6mn) at first auction in 16yrs
April 4, 2024

 Central bank Executive Director and

spokesperson Mezbaul Haque said that 25.312
kg of gold of various quality was sold for BDT
17.99 crore. After completing all the processes on
Wednesday, these golds were handed over to the
buyer company Venus Jewellers.

From: https://www.tbsnews.net/economy/banking/bangladesh-bank-sells-
gold-worth-tk18-crore-first-auction-16yrs-822276

Associate firms can take loans if group found not

wilful defaulter; NBFIs asked to form willful defaulters’
identification unit by April 30
April 4, 2024

 Banks can extend loans to companies associated

with groups that have defaulted on loans until
they are classified as wilful defaulters. However,
in such instances, the process will require
approval from the Bangladesh Bank.
 The Bangladesh Bank asked non-bank financial
institutions (NBFIs) to form a 'willful defaulters
identification unit' within this month.

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Morning Newsflash
Thursday, April 4, 2024
IDLC-SL Research

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