Home ›› 10 Nov 2022 ›› Front
On top of continuing to fall short of their goal of reducing carbon emissions by 2030, global apparel fashion brands and industry have increased emissions in 2022 compared to previous years, says a study.
According to the 2022 Fashion Supply Chain Emissions Report of Stand.earth, the fashion industry is responsible for 5–8 per cent of annual climate emissions and has increased its emissions since committing itself to carbon reductions in 2021.
The report was published on November 1 ahead of the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change, or COP27, that is now being held in Sharm El-Sheikh, Egypt.
The report analysis was based on purchased goods and services data time to time with the international market price and the task of determining the exchange rate will be gradually left to the market.
The loan programme
The end-of-mission press release from the IMF includes a statement from Rahul Anand, who led the IMF delegation here. It outlines a programme put together by Bangladeshi authorities supported by the IMF as part of the loan agreement.
Key elements of the programme include creating additional fiscal space, containing inflation and modernising the monetary policy framework, strengthening the financial sector, boosting growth potential, and building climate resilience.
As part of creating additional fiscal space, higher revenue mobilisation and rationalisation of expenditures will allow increasing growth-enhancing spending. The impact on the vulnerable will be mitigated by higher social spending and better-targeted social safety net programmes.
As part of containing inflation and modernising the monetary policy framework, the monetary stance will be guided by the inflation outlook. Monetary policy modernization will promote macroeconomic stability and improve policy transmission. Increased exchange rate flexibility will help buffer external shocks.
As part of strengthening the financial sector, reducing financial sector vulnerabilities, strengthening oversight, enhancing governance and the regulatory framework, and developing capital markets will help mobilise financing to support growth objectives.
As part of boosting growth potential, creating a conducive environment to expand trade and foreign direct investment, deepening the financial sector, developing human capital, and improving governance to enhance the business climate will lift growth potential.
As part of building climate resilience, strengthening institutions and creating an enabling environment will help meet climate objectives, support large-scale climate investments, and help mobilise additional climate financing.
Finance Minister Mustafa Kamal said the IMF lending programme is aimed at stabilising the external sector of the economy, providing a solid foundation for the economy ahead of its transition from LDCs in 2026, strengthening the financial sector and addressing global climate change risks to achieve high growth and high-medium-income country within the time frame set by the government.
Steps to be taken by Bangladesh
BB Governor Abdur Rouf said the IMF loan is being taken keeping four objectives in mind – stabilising the external sector, stabilising the financial sector, LDC graduation and achieving the goal of becoming a developed country by 2041.
The minister said, “Government revenue collection will be increased by strengthening the reform of the revenue system and enhancing the efficiency of tax administration.
“We have taken the initiative to set up electronic fiscal devices for VAT collection. So far 6,732 machines have been installed. Another 60,000 machines will be installed in the next year and 2,40,000 machines will be installed in the next 4 years.”
On withdrawing the interest rate cap in bank loans, the minister said if the cap is removed, interest rate will get back at 18-20 per cent and nobody wants that.
On the state of the country’s foreign reserve, he said, “Our reserve is not at a good level right now, just like the others. The neighbouring countries are also facing the same situation. Our reserve has dwindled, that is the reality. But it will go up again.”
On calculating the reserve, he said, “We will continue to calculate our reserves as we have been doing. But we will mention our spending in different sectors from reserve and the amount of net reserve. We will disclose it all, hiding nothing.”
Meanwhile, BB Governor Abdur Rouf, regarding the initiative to increase remittances, said the exchange houses promised to not charge any fee from expatriates on remittance services, which will save expatriates 2%-2.5%. Exchange houses will also be open on holidays in various countries so that workers can send remittances on their holidays.
The governor said expatriates are getting Tk 108 for a dollar. Also getting 2.5% incentive from Govt. Previously, workers used to get Tk 84 for 1 dollar, now they are getting much more than that. Therefore, it will not be possible to increase the remittance collection by increasing the money against the dollar, the expatriates have to be satisfied with the service.
