Md. Shahidul Haque, Bangkok, Thailand
Bangladesh is seeking to strengthen its economic ties with China by moving away from loan-dependent financing and increasing joint investments and foreign direct investment (FDI). To this end, the government has held discussions with the Export-Import Bank of China (China Exim Bank) on changing the existing financing model.
Finance Minister Amir Khosru Mahmud Chowdhury disclosed this on Wednesday, October 14, following a meeting with representatives of China Exim Bank on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok, Thailand.
The finance minister said discussions had focused on reducing dependence on existing loan-based financing for economic cooperation with China and increasing equity-based investment. He noted that this approach could create new opportunities for partnership between the two countries.
“We are moving away from loans and gradually shifting towards greater investment. We have held lengthy discussions with China Exim Bank, and we hope that changes will be made in this regard,” he said.
Emphasising that increasing investment is a priority of the government's economic policy, the finance minister said that, instead of implementing development projects solely through borrowing, it was necessary to establish a financing framework in which investors and Bangladesh would jointly participate in projects.
If implemented, such initiatives could create greater opportunities for joint ventures and foreign direct investment between Bangladesh and China in the future. However, no specific announcements have yet been made regarding which projects would receive investment, the respective ownership shares of the partners, or when the new financing framework would take effect.
Meanwhile, the finance minister said that separate discussions with representatives of the US Treasury had covered Bangladesh's debt management, bilateral relations, and grant-based financial assistance.
Amir Khosru said Bangladesh's trade relations with the United States were expanding. Referring to imports of aircraft, energy, and various other products from the country, he said Bangladesh had highlighted the need for financial assistance and grants.
The government is seeking further support from the United States to accommodate Bangladesh's growing imports and maintain the balance of external payments. Discussions on the matter have been held with US representatives. However, the finance minister did not announce any final decision regarding the amount or type of potential assistance.
In addition, discussions were held with representatives of the United Nations' International Fund for Agricultural Development (IFAD) regarding potential assistance for Bangladesh's agricultural sector.
However, no decisions were announced concerning the amount of funding or any specific projects.
