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Finance Minister AHM Mustafa Kamal yesterday said the government has granted the scope to businesses to invest abroad in order to curb the transfer of money out of the country through illegal channels.
“It is not wrong to invest abroad. If you don’t allow it, it will go to different countries through hundi. It is better to do it officially,” he said, responding to a query during a media briefing after the meeting of the cabinet committee on purchase.
His comment came days after the finance ministry issued rules on equity investment abroad, allowing Bangladeshi exporters to invest a portion of their overseas sales in other countries.
Now, businesses will be able to invest abroad 20 per cent of their average exports in the previous five years or 25 per cent of net asset values based on the latest audited reports, whichever is lower.
However, only export-oriented firms have been allowed to make the investment, according to a notice issued by the Bangladesh Bank.
“It is a good initiative. Our competitiveness has increased. The people of the country are now very innovative. The country has now evolved from a least-developed country to a developing nation. If this is not done now, we will lag behind other countries,” Kamal said.
Responding to another query whether Bangladesh’s economic growth would slow this year, Kamal said the government’s estimate is the GDP growth would be 7.2 per cent in the current financial year.
The International Monetary Fund has projected that Bangladesh’s economy would expand by 6.6 per cent.
“The IMF is always conservative. I believe our goals will be achieved,” Kamal said.
The size of the economy would be $455 billion in the current fiscal year.
“Through this, we would be able to cross the half-trillion-dollar milestone,” he added.
(TDS)
