Dhaka to urge Beijing to cut loan interest rate: Touhid
Foreign Affairs Adviser Md Touhid Hossain. File photo
DHAKA, Jan 15, 2025 (BSS) – Bangladesh will seek a reduction in loan interest rate and an extension of the repayment period by 30 years from China during the upcoming visit of Foreign Affairs Adviser Md Touhid Hossain.
“Mainly, economic issues will come up for discussion. Some issues are very important. Bangladesh’s trade and economic relations with China are very important,” Touhid told reporters at a briefing on his Beijing visit at the foreign ministry here this afternoon.
The adviser said he will also request withdrawal of commitment fees as part of efforts to enhance economic cooperation between the two countries.
Foreign adviser’s official visit to China, scheduled for January 20-24, marks a pivotal moment in Bangladesh-China relations and comes at the invitation of Chinese Foreign Minister Wang Yi.
Touhid emphasized that budgetary support, expediting loan disbursement for ongoing projects, and the removal of commitment fees would feature prominently in discussions with his Chinese counterpart.
“We will also explore how China can provide budgetary support and accelerate loan disbursements for various projects in Bangladesh,” he said.
A request will also be made for the complete withdrawal of commitment fees, he added.
This visit, described as a “very important first bilateral visit” since the formation of the interim government led by Prof Muhammad Yunus in August last year, is seen as a significant step towards strengthening and deepening relations with Beijing.
Key areas of cooperation, including trade, investment, and economic collaboration, will be reviewed during the visit.
The foreign adviser said discussions will focus on establishing a framework for future bilateral relations, including cooperation in agriculture, education, infrastructure, renewable energy, and sustainable solutions to the Rohingya crisis.
Asked about the Global Development Initiative (GDI), a multilateral development framework proposed by Chinese President Xi Jinping in 2021, Touhid noted that Bangladesh’s engagement with the initiative would be approached positively.
“Our relationship with China is not just government-specific,” he said emphasizing the broader and long-term nature of Bangladesh-China ties.
Responding to a query about the $5 billion budget support proposal initiated during the previous regime, Touhid confirmed that discussions remain ongoing.
Bilateral trade between Bangladesh and China currently stands at around $25 billion annually, with a trade imbalance heavily favoring China.
The visit is expected to address trade restructuring and explore opportunities to boost Chinese investment in Bangladesh.
The visit also marks the beginning of preparations for the 50th anniversary of diplomatic relations between Bangladesh and China, which will be celebrated in 2025.
During his visit, the foreign adviser will deliver speeches at the China Institute of International Studies and the Shanghai Institute of International Studies.
He is also scheduled to meet business representatives in Shanghai to promote Chinese investment in Bangladesh.
Toihid will depart Dhaka on January 20 and return on January 24 as official engagements planned from January 21-23.