Bangladesh to defer non-urgent projects to avoid foreign exchange crisis- Finance Minister Mustafa Kamal

Bangladesh Finance Minister A H M Mustafa Kamal said on Wednesday that the government is very much cautious about foreign exchange management in view of the prevailing global situation. He said that the world is facing an unusual situation and the government does not want to make any unnecessary foreign exchange spending at this point of time. Steps are being taken to reduce the import of luxury goods, said the minister.

Speaking to the media after the meeting of the Cabinet Committee on Government Purchase (CCGP), Finance Minister Mustafa Kamal said that the government has decided to delay those projects which are not required urgently for six months or more to avoid a crisis of foreign exchange in the country, reports the official news agency BSS.

Speaking about other measures to save foreign exchange, Mustafa Kamal said that Prime Minister Sheikh Hasina has instructed that government officials will not undertake any foreign tour unless it is urgent and necessary.

He said that when times are tough, the government has to make tough decisions. These decisions are being taken considering the overall situation in the world.

Bangladesh had a foreign exchange reserve of USD 44.08 billion dollar in April, as per monthly data released by the Bank of Bangladesh. It has come down from the high level of USD 48 billion in August last year. However, the foreign exchange reserve of Bangladesh is sufficient to meet the average import bill of 5-6 months, say the experts.