Bangladesh Government decides to form 10 billion sovereign wealth fund

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Bangladesh Government decides to form 10 billion sovereign wealth fund

The government today decided in principle to form a Sovereign Wealth Fund starting with US$ 2 billion – which will be at the disposal of the government for executing public-interest projects.

Initiatives to form a law and framework of the fund and its expenditure will be taken soon, Cabinet Secretary M Shafiul Alam told reporters after a cabinet meeting.

The fund will start out with US$ 2 billion and will be US$ 10 billion in five years, he said. “All countries in the world have a sovereign wealth fund.”

The government can use the fund for projects – what it thinks will be best for the public.

The decision was taken in today’s regular cabinet meeting chaired by Prime Minister Sheikh Hasina.

Also, the cabinet approved in principle the draft of a law concerning use of underground water management for agricultural purpose that proposes extended punishment for offenders.

Additionally, the cabinet discussed that Bangladesh’s legal structures against money laundering are equal in the standard of technical compliance to many developed countries.