Bangladesh Roundup: Economic risks, heatwave challenges, India lifts export ban
Major economic risks
Bangladesh's economy is facing three major risks, including persistent inflation, a growing debt burden, and slow economic growth, according to the Centre for Policy Dialogue. The high inflation is impacting low-income and marginalised individuals' ability to afford basic needs, while the increasing reliance on borrowing for debt servicing is raising the debt-to-GDP ratio. "The government's loan from domestic sources is almost double compared to the foreign debt, which is a sign of big problems. We know that around $5 billion in debt is unpaid in the energy sector," said Debapriya Bhattacharya a fellow at the Centre for Policy Dialogue. Additionally, slow economic growth is shrinking the government's fiscal space for spending, the Daily Star reports.
Educational institutions reopen amid heatwave challenges
Bangladesh’s educational institutions have reopened amid heatwave challenges, with authorities closely monitoring the situation to ensure the safety and well-being of students and staff, according to local media Somoyo. The Bangladesh Ministry of Education has implemented stringent measures to mitigate risks associated with the heatwave, including limiting assembly on school premises and preventing students from engaging in educational activities outside the classroom. The decision to reopen educational institutions was initially scheduled for April 21, but due to the severity of the heatwave, they were declared closed on April 20.
India lifts onion export ban
India has lifted its ban on onion export to Bangladesh but imposed a 40% export duty on the product. The removal of the ban is unlikely to help tame the price of onion in Bangladesh due to existing higher duties, experts suggest. The Indian government has allowed shipments to India's friendly nations, including the UAE and Bangladesh, according to the Financial Express. The Bangladesh government requested the Indian government to permit 50,000 tonnes of onion export in March. However, the price of onion increased by 30-40% in a month during its peak harvest season in the country. Imports from India through private channels have remained halted for the last four months due to the export ban, the Financial Express reported.
Record foreign ships dock at Bangladesh's Mongla Port
Mongla Port, the second largest port in Bangladesh has seen eight commercial foreign ships dock, setting a record since its establishment. Notable vessels anchored at the port included Liberian-flagged Maersk Hai Phong, Singaporean-flagged Kota Tenaga, and MV Kota Rancak. The port's progress is advancing due to government efforts and port authority initiatives with over 55 development projects completed by the government. Mongla Port's role in driving economic progress is highlighted by a robust annual growth rate of around 20% in port utilisation.
Embassy in Washington welcomes Bangla New Year
Bangladesh Embassy in Washington celebrated the Bangla New Year on May 4. The event led by Bangladesh Ambassador to the US Muhammad Imran featured a cultural show showcasing Bangladesh's rich culture and heritage. According to the Daily Sun, the Ambassador encouraged Bangladeshis living abroad to spread awareness of their country's rich history, culture, and legacy while also instilling a sense of patriotism and the spirit of the historic Liberation War. The full-day event, which featured traditional Bangladeshi dishes, stalls selling traditional handicrafts, banners and brochures commemorating the South Asian nation's independence, language movement, and development, drew well over 5,000 foreign visitors and locals, the Daily Sun reports.
