Foreign aid policy by Nov likely

Some 45 years after Independence, the government is formulating a national aid policy, which it is likely to be finalised in November, sources at the Economic Relations Division (ERD) of the finance ministry have said.
The ERD had set a target to finalise the policy by June this year but failed due to the prevailing situation.
“We're working on it. The work is at the draft level, and consultation meetings are being held. It'll be sent to the Cabinet for approval after it is finalised,” ERD additional secretary Monwar Ahmed told The Independent.
The draft policy highlights future projections of the foreign aid situation and notes that when Bangladesh reaches middle-income status, external finance flows are bound to evolve significantly.
Ahmed said they will hold two meetings with policymakers, civil society members, business leaders and media personalities. “We'll incorporate their opinions and suggestions to make a comprehensive policy," he added.
Official development assistance (ODA) flows from bilateral development partners are likely to decrease. Other potential sources, such as support from southern sources, and dedicated funds may increase in future, the draft says. The document mentions that with the launch of new multilateral and regional financial institutions, important changes in the multilateral lending system can be foreseen.
The country has no comprehensive policy on foreign aid, though it does obtain a significant amount from abroad in the form of project aid and grants. Earlier, Bangladesh was also a food aid recipient. The document says that the policy is being devised with a view to ensuring that Bangladesh maintains a clear, effective and coordinated approach for mobilising and managing foreign assistance.
The policy will be applicable to the mobilisation of external resources and their effective management for development interventions in Bangladesh. The policy will provide guidance to support the implementation of domestic and international commitments to cooperation in development and their effectiveness.
These external resources include ODA (grants and concessional loans), vertical fund, and international foundations, climate fund, aid for trade, non-concessional, commercial borrowings, and other sources of cooperation, such as south-south and triangular cooperation.
Both on-budget and off-budget development cooperation will come under the purview of the policy. However, IMF credits, special borrowings by the food ministry, the Bangladesh Shipping Corporation, Biman Bangladesh, and Bangladesh Petroleum Corporation, and assistance for defence, and special assistance during disasters and natural calamities will remain beyond the scope of this policy.
According to the ERD’s Foreign Aid Budgetary Account, Bangladesh receives foreign aid to the extent of 2 per cent of GDP every year on average. After Independence, Bangladesh received USD 62.39 billion as friendly aid from different bilateral and multilateral development partners.

Foreign aid policy by Nov likely

Some 45 years after Independence, the government is formulating a national aid policy, which it is likely to be finalised in November, sources at the Economic Relations Division (ERD) of the finance ministry have said. The ERD had set a target to finalise the policy by June this year but failed due to the prevailing situation. Were working on it. The work is at the draft level, and consultation meetings are being held. Itll be sent to the Cabinet for approval after it is finalised, ERD additional secretary Monwar Ahmed told The Independent. The draft policy highlights future projections of the foreign aid situation and notes that when Bangladesh reaches middle-income status, external finance flows are bound to evolve significantly. Ahmed said they will hold two meetings with policymakers, civil society members, business leaders and media personalities. Well incorporate their opinions and suggestions to make a comprehensive policy, he added. Official development assistance (ODA) flows from bilateral development partners are likely to decrease. Other potential sources, such as support from southern sources, and dedicated funds may increase in future, the draft says. The document mentions that with the launch of new multilateral and regional financial institutions, important changes in the multilateral lending system can be foreseen. The country has no comprehensive policy on foreign aid, though it does obtain a significant amount from abroad in the form of project aid and grants. Earlier, Bangladesh was also a food aid recipient. The document says that the policy is being devised with a view to ensuring that Bangladesh maintains a clear, effective and coordinated approach for mobilising and managing foreign assistance. The policy will be applicable to the mobilisation of external resources and their effective management for development interventions in Bangladesh. The policy will provide guidance to support the implementation of domestic and international commitments to cooperation in development and their effectiveness. These external resources include ODA (grants and concessional loans), vertical fund, and international foundations, climate fund, aid for trade, non-concessional, commercial borrowings, and other sources of cooperation, such as south-south and triangular cooperation. Both on-budget and off-budget development cooperation will come under the purview of the policy. However, IMF credits, special borrowings by the food ministry, the Bangladesh Shipping Corporation, Biman Bangladesh, and Bangladesh Petroleum Corporation, and assistance for defence, and special assistance during disasters and natural calamities will remain beyond the scope of this policy. According to the ERDs Foreign Aid Budgetary Account, Bangladesh receives foreign aid to the extent of 2 per cent of GDP every year on average. After Independence, Bangladesh received USD 62.39 billion as friendly aid from different bilateral and multilateral development partners.