The Asian Development Bank (ADB) will provide 14 crores and 30 lac dollars to Bangladesh for assistance in expanding international trade. To this end, an agreement was signed with the Government of Bangladesh and ADB. According to the agreement, the company will provide the mentioned amount as a policy loan for the development of trade security, trade volume, efficiency, and potential in Akhaura, Sonamasjid, and Tamabil land ports of Bangladesh. Fatima Yasmin, Secretary, of the Economic Relations Department, Ministry of Finance, and Edimon Ginting, ADB Country Director (Bangladesh), virtually signed the agreement. News: Bonik Barta.
Bangladesh has been continuously reforming trade facilitation to achieve diversity and competitiveness through the improvement of quality in the export sector. To this end, trade is being expanded through bilateral trade and investment assistance agreements with various parties, as well as support activities with various border agencies and private partners.
Under the agreement, South Asia Sub-Regional Economic Co-operation will facilitate trade policy reform and cross-border development at Akhaura, Sonamasjid, and Tamabil border crossing points through the Integrated Trade Facilitation (SASEC) Sector Development Program (SDP). This will help in enhancing connectivity between the SASEC member countries through the facilitation of trade activities and in making Bangladesh a regional hub. The SDP will help Bangladesh’s export destination in the regional market to diversify and diversify its garments in the export sector.
Under this assistance package of ADB, a policy loan of 9 crore dollars or Tk 836 crores 94 lacs and 82 thousand. The loan will be used to reform the customs policy framework and develop the cargo clearance system in line with international standards. Besides, the money will be spent on strengthening the National Board of Revenue (NBR) and the Ministry of Finance.
In addition, ADB will provide a project loan of 5 crores and 30 lac dollars or Tk 492 crores 86 lacs and 95 thousand in Bangladeshi currency as a complement to the policy reform. The loan will be used for the construction of NBR and Bangladesh Land Port Authority (BLPA) integrated customs stations and infrastructure at Akhaura, Sonamasjid, and Tamabil land ports. Necessary facilities and equipment for conducting customs clearance and cargo transhipment activities will be set up at these land ports.
Under the agreement, a technical assistance grant of 15 lac dollars or Tk 13 crores 94 lacs and 91 thousand in Bangladeshi currency will be provided from a special technical assistance fund. This money will be spent on modernising the policy framework of customs and establishing cooperative relations with the border agencies. The money will also be spent on enhancing the NBR’s capacity to conduct customs activities at land ports and building the project implementation capacity of the land port authorities and the NBR.
From 1973 to last year, ADB provided 4 thousand and 800 crore dollars in loans, grants, and co-financing to Bangladesh. As of April this year, there are 50 ongoing projects in Bangladesh with ADB’s funding of 1 thousand and 100 crore dollars.
In this regard, ADB Country Director (Bangladesh) Edimon Ginting said that ADB is helping to increase export diversification and competitiveness in the growth of industrialisation and trade and expansion of sub-regional trade by harmonising policies and strategies in Bangladesh. ADB assistance will help increase the volume of import and export cargoes at Akhaura, Sonamasjid, and Tamabil land ports. By 2027, the volume of cargo transport in the ports will increase by at least 50%. At the same time, customs clearance and cargo transhipment time will be reduced by at least 50%. At this time e-payment system will be introduced in all three ports. Annual cargo transport capacity will increase to 5 lacs and 20 thousand tonnes. Besides, Customs Laboratory, Customs Warehouse, and Customs Regional Training Academy will be set up.
