4:42 pm - Friday January 18, 2729

BB plans $2-bln funding for infrastructure

Bangladesh Bank said recently that it planned to provide funds of $2 billion to develop the country’s infrastructure, in hopes of spurring economic growth.

Poor infrastructure is often cited as one of the major hindrances to growth in the South Asian bbcountry.

“We may provide up to $2 billion from our $26 billion foreign-exchange reserve to the proposed sovereign wealth fund to develop infrastructure facilities across the country,” said Atiur Rahman, the governor of Bangladesh Bank.

Bangladesh’s foreign exchange reserves hit a record $26.06 billion on Monday, fuelled by steady exports on the back of readymade garment sales and remittances.

The government aims to boost sagging growth to 7 percent in the fiscal year that started in July, versus 6.2 percent in the previous fiscal year, after severe political unrest crippled the economy and killed more than 120 people.

Courtesy: Reuters