Foreign Dependence Reduced in Budget: Foreign Minister

Foreign Minister Dr. Hasan Mahmud announced that the development budget has significantly reduced the country's dependence on foreign loans. He emphasized that, while some foreign loans are necessary due to global economic conditions, the country now has the capability to reject unsuitable or undesirable loan proposals under the Prime Minister's leadership.

On Sunday (June 30), Dr. Mahmud addressed reporters after the 2024-25 fiscal year budget was unanimously passed in the National Parliament. He contrasted the current situation with the past, noting that during the BNP period, the finance minister had to seek foreign aid with a "begging bag" before the budget. Foreign dependence was over 50 percent in the development budget during that time, but it has now decreased to 15-20 percent. He also mentioned that the government has turned down several loan offers from institutions like the World Bank.

Dr. Mahmud acknowledged the necessity of some foreign loans for overall and global economic stability, citing partnerships with the World Bank and the Asian Development Bank. He explained that these provisions need to be utilized case-by-case to avoid lapsing funds.

Addressing budget criticisms, the Foreign Minister called them traditional and pointed out the high budget implementation rate of 92 to 96 percent over the last 15 years. He highlighted significant national progress, including increased per capita income, reduced poverty from 41 to 18.5 percent, and a decrease in extreme poverty from 25.5 to 5 percent. He also noted that Bangladesh's average GDP growth has surpassed that of India and long surpassed Pakistan's.

Dr. Mahmud announced his upcoming travel to Riyadh on Monday (July 1) to attend political consultations with Saudi Arabia. He described Saudi Arabia as a major development partner, with about 3 million Bangladeshis living there and sending remittances home. He plans to discuss cooperation in green energy, solar power, port management, and encourage Saudi investment in the industrial sector.

Additionally, Dr. Mahmud will propose that Saudi Arabia deposit funds in offshore accounts in Bangladeshi banks, offering regular profits and the ability to trade in their currency. He highlighted that Bangladesh has opened offshore account facilities for foreign individuals, institutions, and expatriate Bangladeshis.