Former Vice-Chancellor of Jahangirnagar University and prominent economist Prof. Abdul Bayes believes the interim government should permit industrial entities to utilize necessary funds for production, supply, import, and maintaining market stability for employees.

In an exclusive interview with the multimedia news portal Bart24.com, Professor Bayes expressed concern that recent violence, arson, and looting of industrial establishments would adversely affect the overall economy.

He discussed critical issues facing the country’s economy, including industrial production and foreign investment amid the current fragile law and order situation.

Barta24.com: The majority of the country's import sector relies on large importing companies. What actions should the government take with these importers to stabilize the market?

Prof. Abdul Bayes: Currently, they have no options. The government's policy should be that businesses should not be punished for the actions of individuals. If someone commits a wrongdoing, they should be held accountable, but businesses should not suffer. For instance, S. Alam Group is a key importer of essential commodities; their operations should not be hindered by regulations that freeze accounts. Monitoring for issues like money laundering is essential, but businesses should be allowed to manage their finances to maintain operations. Importers bring valuable experience and infrastructure to the table, and we should adopt indirect measures to minimize the impact on businesses.

Barta24.com: Many in the wholesale market claim that political changes have complicated the import sector, leading to instability. What should the government do to ensure a steady flow of goods and control prices?

Prof. Abdul Bayes: The issue isn’t that the government opposes importers. Challenges such as rising import costs and the dollar crisis are significant factors. However, the primary issue lies in our internal market management, which is severely lacking. We need effective supervision and enforcement of laws. Prices are affected by demand and supply dynamics; the dollar crisis and supply chain disruptions drive prices up. The government is trying to manage demand by increasing interest rates, which may not be sustainable. If growth slows, loans become unaffordable, affecting employment. Previous leadership failed to address these issues adequately, and while current measures are positive, they need to be more timely and effective. The old syndicate mentality is resurfacing, and without improved governance, we won't see market stabilization.

Barta24.com: Recent acts of violence against major entrepreneurs have halted production and threatened the livelihoods of many workers. What impact could this have on the macro economy?

Prof. Abdul Bayes: The effects will be profoundly negative. Burning and looting are not viable solutions. If industry owners engage in wrongdoing, legal frameworks exist to address that. Attacks on facilities, like the Gazi Tire Factory, are unacceptable. Law and order is paramount for economic stability. While some may find temporary stability under authoritarian regimes, this approach cannot be a long-term solution. The current government's inability to maintain law and order is concerning; everything, including commodity prices, is linked to this situation. Ongoing unrest is eroding profit margins, and the government must find a way to restore control.

Barta24.com: How do you evaluate the interim government's actions to stabilize the banking sector?

Prof. Abdul Bayes: So far, they have taken commendable steps, like addressing liquidity issues without draining reserves or printing excessive money. These are positive developments. However, reliance on World Bank and IMF loans is not a sustainable solution. While current measures may provide temporary relief, we need to focus on long-term reforms to ensure a stable banking sector.

Barta24.com: The chief adviser of the interim government has reported receiving assurances of $7 billion in loan assistance from various countries, including China. What is your view on the potential challenges of this support?

Prof. Abdul Bayes: All loans carry risks, especially if mismanaged. We already have significant funds unutilized from previous years. The question remains: how will we deploy this new funding? Past borrowing has not always led to productive investment. It's crucial to identify viable projects for this $7 billion. Furthermore, we must be wary of the potential for consultants to siphon off significant portions of the funds, leaving little for local use. Whether a new government or the current one remains in power, the pursuit of loans will continue.

Barta24.com: If the socio-economic situation is unstable, what are the prospects for foreign investment?

Prof. Abdul Bayes: When previous administrations faltered, foreign aid agencies were largely silent. Currently, there seems to be renewed interest, but we must remember this is an interim government. While some reforms may occur, substantial changes will require a return to political governance. Ultimately, it is vital to implement reforms swiftly and prepare for elections. A flawed democracy is preferable to no democracy at all. 

For all kinds of ingenuity, fraud and tricks to loot have been accused against Muhammad Aziz Khan, who is known as the power sector mafia. He has become the richest man in Singapore by sometimes threatening and sometimes holding the power division hostage.

There have also been allegations of subtle fraud in the no-electricity no payment system to evade public attention. Despite withdrawing the investment in the first contract, he again collected a huge amount of rent from the rental power plant during the extension of the term. In this way, information has been found that the same power plant has been sold several times. When there was intense criticism due to the extension of the power plant in several phases. Aziz Khan, who is close to Awami League, then adopted a new strategy of fraud.

It is said in the contract, no-electricity no payment means if you give electricity you will get rent if you don't. Old inefficient power plants are supposed to sit normally. But through the joint manipulation with Mahbubur Rahman, the former Chairman of the Power Development Board, the power plant of Summit has remained operational almost all the time. And since the electricity has been supplied, the capacity payment has to be multiplied by dollars. It has been reported that government power plants have been installed at times to facilitate the Summit Group.

Although the investment was in Bangladeshi currency, Aziz Khan took the bill in dollars. Even when Bangladesh is suffering from dollar crisis, a new dollar agreement was signed with the summit in 2022. According to a statistic of the Electricity Department, an additional payment of Tk. 2,163 crore has been made due to devaluation of Tk. in the last 3 years. A few companies have become money crocodiles by endangering the power sector of Bangladesh.

Sources from the Bangladesh Energy Regulatory Commission (BERC) said that the excess power generation capacity has become a burden. At that time, Bangladesh Power Development Board (BPDB) extended the term of power plants of Summit, Orion and United Confidence Group. Once proposals for renewal of contracts for 5 power plants were rejected due to lack of requirements, the contract was renewed completely illegally bypassing BERC.

Former member of BERC, Maqbool E-Elahi Chaudhury, told Barta24.com that some of these power plants had contracts of 3 and 5 years. The capital investment he had at the time of the first contract was paid. At the end of the term, when the price of the power plant becomes zero, how can the old contract be renewed? That is why it was cancelled.

In August 2022, a total of 6 power plants, including the old 4 of Summit, were extended. Among them were Summit Narayanganj Power Limited's Madanganj 102 MW furnace oil based power plant, Madhavadi 11 MW gas based power plant, Jashore 40 MW (furnace oil) power plant jointly owned by Summit and United Group, Goalpara 115 MW power plant. Despite the objections of the Energy Regulatory Commission itself, the contracts of the power plants were renewed.

Khulna Power Company Limited Unit-II jointly owned by Summit and United Group was listed on the Dhaka Stock Exchange in 2009. Initially the agreement was made for 5 years. In that agreement, the company withdrew the investment along with the profit. Furnace oil-based Goalapara 115 MW power plant's contract was renewed several times. The last extension was on 22nd August 2022 for 2 years. Renewal conditions are No Electricity No Payment.

On July 27, it was seen that 48 megawatts of power was drawn from the summit power plant during the day peak and 60 megawatts during the evening peak. A similar precedent has been observed in case of Jashore 40 MW. While Summit Group's Jashore power plant generates power, state-run Northwest Power Generation Company's Madhumati 100 MW power plant is installed in the same zone.

At the same time the contract of Madanganj 102 power plant was also extended for 2 years. The Narayanganj zone government power plant was put into operation on July 27 to facilitate Summit Group. This picture was taken almost every day.

There is a list called Merit Order in BPDB parlance for which power plants will be commissioned first. The basis of this list is that the lowest cost power plant should be run first. Then, as the demand increases, the higher cost centers will be operated in a phased manner accordingly. First in this list is hydropower, followed by gas, coal, furnace oil respectively. As such, Summit Group's power plants should be the last. But to everyone's surprise, the Summit's power plants remain at the top for mysterious reasons. This is where Singapore's richest man, Aziz Khan, performed magic.

The VOMP (Variable Operation and Maintenance Price) cost strategy of the power plant shows a few paise less. And Aziz Khan left other power plants behind. So that it is easy to get the capacity charge. BPDB has been hit hard by this. Electricity has been taken from Summit by showing a few paisas less. Northwest's power plant would receive a capacity charge if it were sitting, and Summit would not. In this strategy of BPDB, both power plants have to pay capacity charges. In an order dated August 22, 2022, the term of 4 power plants of Summit Group and 1 power plant of Orion Group was extended.

An official of Bangladesh Power Development Board (BPDB) said on condition of anonymity that after the coming of the interim government those power plants have been closed, it is not running now! It's going well. Those power plants had many options, but BPDB was often forced to follow the above instructions.

Electricity generation statistics also said so. When the deadline was extended in 2022, only 40 percent of the electricity generation capacity was used that year. In FY 2022-23, the actual production average is only 10 thousand 97 MW against the production capacity of 24 thousand 911 MW, which is only 40.53 percent of the total production capacity. While 60 percent of power plants are sitting idle, Summit, Orion, United power plants have been renewed.

The reason for apprehension is that even if the power plant is sitting, the money has to be calculated from time to time for capacity payment. In the financial year 2021-22, capacity payment of Tk. 18 thousand 977 crore has to be paid. According to the data of Bangladesh Power Development Board (BPDB), the average production cost of electricity in the financial year 2019-20 was 2.13 taka, in the financial year 2020-21 it was 3.16 taka and in 2022 it was 8.5 taka, now the average production cost has exceeded 10 taka.

In the summary sent by the Power Division to the Prime Minister for the renewal of those 6 power plants, it is said that the period of some rental power plants is being extended on the basis of 'no electricity no payment' due to protection of system frequency, increase in reliability and relatively low tariff. In the meantime, 9 furnace oil-based power plants with a capacity of 757 MW and five gas-based power plants with a capacity of 558 MW have been extended.

Cab Energy Adviser Professor M Shamsul Alam told Barta24.com that those who said furnace oil-based power plants have been extended for frequency are showing the people the High Court, or they are idiots. In actuality, the deadline has been extended to give business to government-backed traders. The period of these has been extended earlier in the special law.

A business leader said that the summit group has taken the country's power sector to the brink. He built a mountain of money in Singapore by looting the country's money. The local company Summit became a Singaporean company overnight in a few years. Earlier I used to pay dollars in the country, now I am delivering dollars to Singapore. Aziz Khan has endangered Bangladesh's power sector in the process of getting rich. Aziz Khan, the richest man in Singapore, is considered by many to be the top fraud in Bangladesh. It is doubtful whether anyone has looted in such a novel way as they did. 

World Bank will give 3 billion dollars loan to Bangladesh for financial sector reform.

World Bank President Ajay Banga has given this promise to the Chief Adviser of the Interim Government of Bangladesh Dr. Muhammad Yunus On Wednesday (September 25) in New York.

The Chief Adviser's Press Wing informed this information in a message on their own Facebook page.

As mentioned in the Facebook message, World Bank President Ajay Banga held a meeting with Dr. Muhammad Yunus. In this meeting, he promised to provide 3 billion dollars in loan assistance to reform the financial sectors of Bangladesh.

Besides, the Chief Adviser also met with Chinese Foreign Minister Wang Yi.

In this meeting, various issues including solar panel investment and business cooperation were discussed for the development of relations between the two countries.

After one day, the price of gold is increasing again. This time it is increasing by Tk. 3 thousand 44. The price of good quality gold per bhori is Tk. 1 lakh 38 thousand 708. The new rate will be effective from Thursday.

The price of gold is Tk. 1 lakh 38 thousand 708 per bhari - this is the highest price of gold in the history of the country. Earlier, the price of gold jumped to the highest level on September 24. At that time, the price per bhori was Tk. 1 lakh 35 thousand 664. Note that in 1970, the year before independence, the gold price was Tk.154.

This information was informed in a press release signed by Masudur Rahman, Chairman of the Price Determination and Price Monitoring Standing Committee of Bangladesh Jewelers Association (BAJUS) on Wednesday (September 25) evening.

According to the notification, the price of acid gold (pure gold) has increased in the local market. As a result, the new price of gold has been fixed considering the overall situation.

According to the new prices, per bhari (11.664 grams) of 22 carat gold will cost Tk. 1 lakh 38 thousand 708. Apart from this, the price of gold has been set at Tk.1 lakh 32 thousand 398 per 21 carat, Tk. 1 lakh 13 thousand 491 per 18 carat and Tk. 93 thousand 160 per traditional.

It also said that government-mandated 5 percent VAT and Bajus-mandated minimum wage of 6 percent must be added to the selling price of gold. However, the wages may vary depending on the design and quality of the jewelery.

Earlier, Bajus last adjusted the price of gold in the domestic market on September 24. At that time, the organization had increased the price by Tk. 2 thousand 613 to Tk. 1 lakh 35 thousand 664 per bar of 22 carat gold. Besides, the price of gold was fixed at Tk. 1 lakh 29 thousand 505 per 21 carat, Tk. 1 lakh 10 thousand 995 per 18 carat and Tk. 91 thousand 38 per traditional.