Friday , 17 September 2021
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Sovereign wealth fund endorsed

businessnews24bd.com

The government has decided to float a ‘sovereign wealth fund’ to utilise the country’s foreign exchange reserve in development purpose.

 The cabinet on Monday approved the proposal on the fund which would begin with $2 billion.

In the next 10 years, the authorised capital of the fund would be raised to $10 billion, according to the decision.

The finance division moved the proposal seeking the approval from the cabinet which sat for the weekly meeting at Bangladesh Secretariat with prime minister Sheikh Hasina in the chair.

Briefing newsmen after the meeting, cabinet secretary Mohammad Shafiul Alam said the fund would be raised in the light of practice in many countries.

“The government will be able to utilise the fund in any development purpose, especially in matching fund with the foreign investors,” the secretary said.

He added that there would have no adverse impact on the country’s economy as $2 billion would be added to the fund from the foreign currency reserve.

He told a questioner that necessary laws and rules and required structures would be framed later on.

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