Hasina Seeks Modi's Help to Survive Bangladesh's Economic Crisis

[RiazHaq]

Hasina Seeks Modi's Help to Survive Bangladesh's Economic Crisis

Shaikh Hasina, the Prime Minister of Bangladesh, recently visited New Delhi to seek political and economic assistance from the Indian Prime ...

www.southasiainvestor.com

Shaikh Hasina, the Prime Minister of Bangladesh, recently visited New Delhi to seek political and economic assistance from the Indian Prime Minister Narendra Modi. This summit was preceded by Bangladesh Foreign Minister Abdul Momen's trip to India where he said, "I've requested Modi government to do whatever is necessary to sustain Sheikh Hasina's government". It has long been an open secret that Indian intelligence agency RAW helped install Shaikh Hasina as Prime Minister of Bangladesh, and her Awami League party relies on New Delhi's support to stay in power. Both Bangladeshi and Indian officials have reportedly said that Sheikh Hasina "has built a house of cards"

Bangladesh PM Shaikh Hasina (L) with Indian PM Narendra Modi

British Indian analyst Dr. Avinash Paliwal explains Shaikh Hasina's current dilemma as follows: "Politically reliant on New Delhi, she (Hasina) is finding it increasingly difficult to manage the ramifications of India's turn towards Hindu nationalism that misuses migration from Bangladesh and the Rohingya crisis for domestic electoral gain". Justice Surendra Kumar Sinha, Bangladesh's former Chief Justice, has said India is backing Sheikh Hasina's autocratic government for its own interest. Here's how prominent Indian journalist SNM Abdi explains Indian intelligence agency RAW's influence in Bangladesh: "India wields more influence in Bangladesh than the Security Council’s five permanent members put together. The Research and Analysis Wing (RAW) is the most dreaded outfit in the neighboring country surpassing even the brutally unforgiving RAB (Rapid Action Battalion). Hasina lives in mortal fear of RAW. She knows that she will be toppled if she displeases India. So she has adopted the policy of pleasing India to retain power at any cost".

Bangladesh has received wide acclaim for its remarkable economic success under the authoritarian leadership of Shaikh Hasina over the last decade. She has jailed many of her political opponents and hanged others. She has tamed the country's judiciary and gagged Bangladeshi mainstream media. What has helped her retain power is the fact she has New Delhi's support and she has succeeded in delivering rapid economic growth that has helped improve the lives of ordinary Bangladeshis. However, a combination of current global inflation and the resulting economic crisis is threatening to unravel this formula.

Bangladesh's currency has lost 11% of its value against the US dollar in just one week, import bill has soared by nearly 44%, forex reserves of $37 billion are falling and the revenue from ready made garments export and remittances is not keeping pace with the fast rising imports. Bangladesh is now seeking a $4.5 billion loan to cope with the situation. In addition, India has agreed to trade with Bangladesh in local currencies to reduce pressure on forex reserves.

Bangladesh is not the only economy in trouble. The European Union, United Kingdom, Japan, Sri Lanka and Pakistan are also experiencing severe economic pain. India's forex reserves are falling and its current account deficit is rising as foreign investors pull out. High energy prices and the strong US dollar are hurting most of the world economies. Food and energy prices have shot up due to the Russia-Ukraine war. The US currency driven by aggressive US Federal Reserve policy of rate hikes has reached new highs. A stronger dollar for the US means cheaper imports, a tailwind for efforts to contain inflation, and record relative purchasing power for Americans. But the rest of the world is straining under the dollar’s rise, according to the Wall Street Journal.

Related Links:

Haq's Musings

South Asia Investor Review

Sheikh Hasina's Witch Hunt in Bangladesh

India's Plan to Divert Brahmaputra River Water Alarm Bangladesh

Military Lessons From Russia-Ukraine War

Vast Majority of Indians Believe Nuclear War Against Pakistan is "Winnable"

Bangladesh: Development Over Democracy

Hindutva: The Legacy of the British Rulers "Divide and Rule" Project

Will Modi's Hindutva Lead to Multiple Partitions of India?

Riaz Haq Youtube Channel

PakAlumni: Pakistani Social Network

Hasina Seeks Modi's Help to Survive Bangladesh's Economic Crisis

Shaikh Hasina, the Prime Minister of Bangladesh, recently visited New Delhi to seek political and economic assistance from the Indian Prime ...

www.southasiainvestor.com

 

[RiazHaq]

Prime Minister Sheikh Hasina said on Wednesday that her recent visit to India benefitted Bangladesh and she has not returned "empty handed" and emphasised that her trip has opened up a new horizon in the relationship between the two friendly neighbouring countries.

'I have not returned empty handed' from India: Bangladesh PM Hasina

India and Bangladesh signed seven agreements, including one on sharing of waters of Kushiyara river which is expected to benefit the regions of southern Assam and Bangladesh's Sylhet region.

www.business-standard.com

During Hasina's visit, India and Bangladesh signed seven agreements, including one on sharing of waters of Kushiyara river which is expected to benefit the regions of southern Assam and Bangladesh's Sylhet region.

"They (India) have shown much sincerity and I have not returned empty handed," Hasina told reporters here, nearly after a week she returned home following a four-day visit to India from September 5 to 8.

"I think that my visit, after a long break of three years due to the Covid pandemic, has opened a new horizon in Bangladesh-India relations, she said, adding that the people of both sides would be benefited from the cooperation in all the areas identified during her India visit and the decisions taken to solve the existing bilateral problems.

Her comments came as leaders of the main opposition outside parliament BNP alleged that Bangladesh gained nothing from her India visit while its secretary general Mirza Fakhrul Islam Alamgir said, "Hasina is unable to deal with India".

Hasina said a MoU on the cross-border Kushiyara river was one of the major achievements of her tour as it was expected to protect over 5,820,000 hectares of land in Bangladesh's northeastern Sylhet region from sudden and protracted flooding.

She said that as per the MoU, Bangladesh would receive 153 cusecs of water under the Surma-Kushiyara project from the common river Kushiyara and as a result, 5,000 hectares of land would get irrigation facilities through Rahimpur Link Canal.

She said the water sharing issue of major Teesta also featured during her talks with Indian counterpart Narendra Modi while BNP chairperson and former prime minister Khaleda Zia even forgot to raise the long pending Ganges water issue during her New Delhi tour."

Bangladesh and India had signed the Ganges Treaty in 1996 during Hasina's ruling Awami League government.

She said the two countries reached an agreement on cooperation in the fields of environment, climate change, cyber security, space technology, and green economy, cultural and people-to-people communication.

"We agreed to complete the construction work of the second gate proposed by India at the Petrapol-Benapole border as soon as possible to expand trade. A delegation from Bangladesh will soon visit India to participate in the start-up fair," Hasina added.

Hasina said New Delhi agreed not to halt export of products like sugar, onion, garlic and ginger to Bangladesh without informing Dhaka in advance so Bangladesh could find alternative sources for those essentials.

She said that cessation of border killings, trade expansion, withdrawal of anti-dumping duty on Bangladesh jute products, repatriation of the Rohingyas, import of electricity from Nepal and Bhutan via India, were also discussed.

"After all, in the changed world situation, this visit would accelerate both the countries to move forward together in a new way, Hasina said.

She added that similarities of language and culture deepened the historic relations with our closest neighbour and friendly country, India.

"Apart from this, the support during the Liberation War and cooperation after the independence has reached this friendship at a special level, she added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

 

[SoulSpokesman]

@RiazHaq @bluesky @UKBengali @Bengal71

Brofessor sb,

It has long been an open secret that Indian intelligence agency RAW helped install Shaikh Hasina as Prime Minister of Bangladesh, and her Awami League party relies on New Delhi's support to stay in power.

Isnt that a good thing that RAW has done given that SHW has turned around BD's fortunes? BD is undisputed #1 when it comes to social and economic indices in SAARC now.

Regards

 

[Abu Shaleh Rumi]

Isnt that a good thing that RAW has done given that SHW has turned around BD's fortunes?

Not really, Bangladeshs growth came from political stability. Because with indian help BAL has managed to wipe out every opposition.

Except increasing public spending with loan BAL has nothing to brag about.

BD is undisputed #1 when it comes to social and economic indices in SAARC now.

Credit goes to NGOs. And NGOs thrived under BNP. BAL is closing many NGOs thats why our social progress has slowed down.

 

[SoulSpokesman]

@Abu Shaleh Rumi

Bangladeshs growth came from political stability. Because with indian help BAL has managed to wipe out every opposition.

Brofessor sb (@RiazHaq) agrees with that in any case. he believes political stability provided by autocratic rulers is best suited for developing countries. We must praise the RAW-BAL Axis.

Except increasing public spending with loan BAL

You guys have failed to show any data which suggests that BD is excessively leveraged.

Regards

 

[Abu Shaleh Rumi]

You guys have failed to show any data which suggests that BD is excessively leveraged.

What? Im just saying BAL has massively increased public spending with loan. You just have to look at our debt number since BAL took power.

 

[SoulSpokesman]

@Abu Shaleh Rumi

I am not aware of where I can get that data. Can you give me the debt/GDP ratio of BD over the last decade or so.

Regards

 

[pikkuboss]

@Abu Shaleh Rumi

I am not aware of where I can get that data. Can you give me the debt/GDP ratio of BD over the last decade or so.

Regards

Bangladesh is doing very well right now. West is jealous of it and wants a regime change like Pakistan because Bangladesh is looking for cheap oil from Russia and trade in Yuan.

 

[SoulSpokesman]

@Abu Shaleh Rumi

Bangladesh Government Debt to GDP

Bangladesh recorded a Government Debt to GDP of 31.70 percent of the country's Gross Domestic Product in 2023. This page provides - Bangladesh Government Debt To GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

If this data is anything to go by there is no great increase in indebtedness over the last 10 years. In 2012, it stood at over 31%, it fell to around 27% in 2017 and then again went upto 32% by 2021.

Regards

 

[bluesky]

Bangladeshs growth came from political stability. Because with indian help BAL has managed to wipe out every opposition.

Brofessor sb (@RiazHaq) agrees with that in any case. he believes political stability provided by autocratic rulers is best suited for developing countries. We must praise the RAW-BAL Axis.

Stealing votes at midnight non-voter election and winning, is not called political stability.

This time, the people will vote in the daytime and will decide which party(ies) to govern the country. Please ask Hasina Bibi to contest in a fair election and win the race.

India has little function this time because the election will be contested in broad daylight.

 

[Abu Shaleh Rumi]

@Abu Shaleh Rumi

I am not aware of where I can get that data. Can you give me the debt/GDP ratio of BD over the last decade or so.

Regards

I wasn't talking about debt to gdp ratio. I was talking about number.

This will give you some info: https://www.thedailystar.net/news/b...icing-may-become-unwieldy-three-years-3020046

 

[SoulSpokesman]

@Abu Shaleh Rumi

The economist differed with the figure and said the country's total debt stood at 44.1 percent of GDP last fiscal year.

India's is close to 90%! I wont compare with the developed countries because their revenues are of a different order. As you can see compared to other developing countries BD is not overly leveraged. Yes, BD's forex is under pressure but then so are every other developing non oil exporting economies. This is a cyclical phenomena and will eventually reverse.

Regards

 

[Abu Shaleh Rumi]

@Abu Shaleh Rumi

The economist differed with the figure and said the country's total debt stood at 44.1 percent of GDP last fiscal year.

India's is close to 90%! I wont compare with the developed countries because their revenues are of a different order. As you can see compared to other developing countries BD is not overly leveraged. Yes, BD's forex is under pressure but then so are every other developing non oil exporting economies. This is a cyclical phenomena and will eventually reverse.

Regards

Sir, I shared that link just prove my claim of "BAL has increased public spending with loans".

Now you can share your opinion on #4 post.

 

[bluesky]

@Abu Shaleh Rumi

The economist differed with the figure and said the country's total debt stood at 44.1 percent of GDP last fiscal year.

India's is close to 90%! I wont compare with the developed countries because their revenues are of a different order. As you can see compared to other developing countries BD is not overly leveraged. Yes, BD's forex is under pressure but then so are every other developing non oil exporting economies. This is a cyclical phenomena and will eventually reverse.

Regards

You are fond of beating about the bushes, it seems.