The government has formed a special fund of Tk 8,000 crore for infrastructural development to ensure clean water supply across the country.
The money will be raised from the market through Shariah-based public sector investment bond lease 'Sukuk'. Bangladesh Bank will manage and supervise it on behalf of the government. A memorandum of understanding has been signed between the Ministry of Finance and Bangladesh Bank in this regard and a policy has been issued.
According to the policy, the fund will be withdrawn from the market in two phases. In the first phase on December 26, Tk 4,000 crore has already been collected. The remaining Tk 4,000 crore will be collected on June 26. The average rate of return on a 5-year bond is about 5 percent. Profits can be made in two phases in every six months. The bond will also be traded in the secondary market. Then anyone can sell and encash before the expiration date. The profit rate will be lower.
This will be the first investment bond of the Government of Bangladesh conducted on Shariah basis. It has been named Ijara Sukuk. Banks, financial institutions various individuals and institutions operating according to Shariah can invest in it. Banks and financial institutions will be able to buy these bonds directly from Bangladesh Bank. Individuals and other institutions have to buy these bonds through banks.
In this context, a concerned official of Bangladesh Bank said, as a result of its introduction, on one hand, the way has been paved for the government to utilize the loan with on the basis of Shariah. On the other hand, Shariah-based banks and financial institutions have created opportunities to invest unutilized amount therein. It also opened a door for various individuals and organizations interested in investing in Shariah. As a result, the path of Shariah-based financing has been expanded and facilitated in the ongoing economic development activities of the country.
At present, there is no safe investment opportunity other than the savings account of the concerned bank and financial institution for investing on Shariah basis.
Sources said that at present, more than 45 per cent of the excess liquidity in the country's banking sector remain with Shariah-based banks and financial institutions. Conventional banks have different types of investment instruments in liquidity management. But there was not much investment opportunity for Shariah-based banks and financial institutions. Due to limited investment opportunities, Shariah-based banks and financial institutions are running out of excess liquidity in most of the cases which has no role to play in the economy. On the contrary, lazy money has to bear the stigma. Through the issuance of Sukuk, liquid amounts of the Shariah-based banks and financial institutions will be utilized by the government at a low cost in various development projects. In consequence, alternative investment opportunities have been created for Shariah-based institutions.
A separate 'Islamic Securities Sub-Division' has been formed in the Debt Management Division of Bangladesh Bank to manage the bond. A 5-member team led by the General Manager (GM) of the department is in charge of the division. A seven-member board of trustee has been constituted under the leadership of the Deputy Governor in charge of the Debt Management Division of the Central Bank to safeguard the interests of Sukuk investors. Its members will include four Executive Directors and a General Manager of the relevant department of the central bank. An 11-member advisory committee has also been formed.
It is possible to buy bonds of a minimum amount of Tk 10,000. Banks and financial institutions can keep their investment as a statutory deposit or SLR (a statutory) deposit of banks and financial institutions in the central bank to avoid risk).
According to the project report, it has been possible to supply pure water to 8 percent of the country so far. Under this project, it will be possible to supply pure drinking water to the remaining 12 percent areas. If it is possible to supply pure water all over the country, the incidence of stomach ailments will be reduced. As a result, pressure on the government from the health sector will be reduced by manifolds.
Under the project, 14 lakh new hand operated tubewells will be provided. Apart from this, pure water supply will be ensured through deep tube wells of WASA. There are severe shortage of pure drinking water due to excess of brackish water in the coastal areas. As salt intake exhibits high blood pressure and kidney disease, incidence of such diseases is very high among the people living in the coastal areas. Besides, it is very difficult to get pure drinking water due to ground water crisis in hilly areas. There will also be equipment to supply pure water to the neighborhood.
The project will be implemented by the Department of Public Health Engineering. It is scheduled to expire on June 30, 2025. The total cost of its implementation has been estimated at Tk 6,065 crore.
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