Finance Minister AHM Mustafa Kamal today said the government granted scope to businesses to invest abroad in order to curb transfer of money out of the country through informal channels namely hundi.

A few days ago, the finance ministry published a gazette of a policy allowing Bangladeshi exporters to invest a portion of their exports abroad.

Responding to a query from reporters on the policy, Kamal said, “It is not wrong to invest abroad. If you don’t allow it, it will go to different countries through hundi. It is better to do it officially than that.”

The minister was talking to the media after a meeting of the cabinet committee on purchase.

He, however, said the opportunity has not been given unilaterally. Those who export will get the opportunity to invest 20 per cent of their retention money or on the basis of their net assets.

“It is a good initiative. Our competitiveness has increased. The people of the country are now very innovative. The country has now evolved from a least developed to a developing country. If this is not done now, we will lag behind other countries,” Kamal said.

Recently, the International Monetary Fund (IMF) has lowered its global growth forecast in its latest report. Responding to another query on whether the growth in Bangladesh would slow down, the minister said the government’s estimate would be 7.2 per cent growth in the current financial year.

However, the IMF’s projection will be 6.6 per cent, he said adding, “The IMF is always conservative, but I believe our goals will be achieved.”

“The size of the country’s economy would be worth $455 billion in the current fiscal year and through this, we would be able to cross the half-trillion-dollar milestone,” he added.