Sunday, 19 September, 2021

Undisclosed money, some remittances going to stock market: Kamal

  • Staff Correspondent
  • 5 August, 2021 12:00 AM
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Undisclosed money, some remittances going to stock market: Kamal
Finance Minister AHM Mustafa Kamal

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Finance Minister AHM Mustafa Kamal on Wednesday said that undisclosed money and a portion of foreign remittances have gone to the capital market.

The minister, however, did not agree with the Centre for Policy Dialogue (CPD)’s suggestion for stopping giving 2 percent cash incentives on remittance inflow, which the think tank said encouraging investment of remittances in unproductive sectors like the capital market.

“Undisclosed money has gone to the share market. And a part of foreign remittances has also gone to the capital market,” Kamal said.

He was talking to reporters virtually after he attended a Cabinet Committee meeting on Government Purchase.

“We want that remittances come through legal channel. The 2 percent cash incentive will continue in case of sending remittance through the legal channel,” Kamal said, adding that remittance inflow through formal channel is good for the country.

The finance minister claimed that although remittance inflow was unusually higher last fiscal year, the flow has somewhat slowed down this fiscal. He also hoped the problem will be overcome soon.

In reply to a question, the finance minister also said he is not sure about whether Covid-19 stimulus loans are going to the capital market.

In a formal reaction to the recently announced monetary policy by the central bank, CPD urged the government to look into whether the stimulus loans are going to the capital market. 

While commenting on a slide in export earnings, Kamal stated that exports are on the decline because of fall in industrial production amid corona lockdown.

The issues will be addressed in future as the current priority of the government is on inoculation to fend of coronavirus infection, he pointed out.

In reply to another question with regard to the World Bank’s suggestions for Rohingya refugee, Kamal said he was not informed of the matter, adding that sometimes the World Bank gives suggestions, but all their suggestions are not taken into consideration.