Bangladesh is raising $1bn to tackle economic crisis over Russia-Ukraine war

The Bangladesh government has begun raising $1 billion to tackle the economic crisis triggered by the Ukraine-Russia war.

In addition, the government will also collect $500 million as budgetary support in the upcoming fiscal year, Prime Minister Sheikh Hasina said in parliament on Wednesday, a day before the new budget is set to be unveiled.

Finance Minister AHM Mustafa Kamal has planned a Tk 6.75 trillion budget with an around Tk 2.5 trillion deficit, officials said, as the world faces the crisis over the war while recovering from the coronavirus pandemic.

Hasina was answering questions from MPs on her plan to tackle the crisis. “Work to collect $1,000 million budget support has begun as part of the government’s plan to tackle emergency situation in future in the wake of the global economic crisis created by the Russia-Ukraine war,” she said.

“This budget support will be spent on stimulus for industries, commercial entities, small and medium entrepreneurs, and on social safety.”

Besides this, the work to collect $500 million budgetary support as part of efforts to tackle the ripple effects of the pandemic is ongoing, the prime minister said.

She said the government is trying to generate jobs and achieve the UN’s Sustainable Development Goals and planned socio-economic development of the people.

The government has provided housing to more than 3.55 million people, who had no home or land, according to her. “All the homeless and landless people will be rehabilitated,” she told the MPs.