Finance Minister: Decision on using forex reserves for mega projects before budget

The government is likely to decide on using foreign reserves to fund mega infrastructure projects before the next budget, says Finance Minister AHM Mustafa Kamal.

At a virtual briefing on Thursday after a meeting of the Cabinet Committee on Public Purchase, he said Prime Minister Sheikh Hasian will make the decision, reports UNB.

“She’s now evaluating how much of forex reserves would be required to be paid against our mega projects ... I think she’ll make her decision even before the next budget,” the news agency quoted Kamal saying.

Referring to prime minister’s comments on the issue, the he said that the forex reserves might be invested in the government-sponsored projects which will yield more profit.

“If we invest our forex in foreign banks, we don’t get more than 1 or 2 percent. But if we can invest in government-sponsored projects, our fund flow will continue and we’ll get more profit,” UNB quoted the minister saying.      

Kamal said that the forex reserves have reached its targeted $42 billion before the celebration of 49th anniversary of our National Victory Day and it will continue to increase. 

The minister said he hoped reserves would reach $50 billion by 2030 or earlier if the global economy is not massively disrupted, according to the UNB report.

Kamal said that 60 percent of the targeted foreign exchange was reached in the five months from July to November. 

Bangladesh has to make payment against different mega projects and recently $100 million was paid, he said before adding that the net reserve now stands at $42 billion.