Many bankers move to Canada’s Begum Para after becoming managing directors to ensure safety to their personal life and capital, immediate past state minister for planning Shamsul Alam said today.
They feel their money is safe here until becoming bank managing directors, but within two to six months after retirement they appear in Canada’s Toronto to live there, Alam said.
It is related to the safety of their capital as they feel their savings have low safety in Bangladesh, the former state minister said.
Capital flight has been taking place mainly because of safety concerns and the government should ensure safety here, he said.
Alam made the comments at a discussion on “Economy: challenges of the new government” organised by the Prothom Alo, a local Bangla newspaper, at its office in Dhaka.
If anybody transacts more than Tk 10 lakh in a week inside the country, Bangladesh Bank seeks information of the individual transaction in order to stop possible terror financing, he said.
The government has the ability to identify who are involved in terror financing and stop harassing the general mass, Alam said.
At the same time, if anybody brings $10,000 from abroad the person needs to declare it at the time of immigration, he said.
Alam questions the rule under which the person needs to declare it as the country wants foreign currencies to be added to its basket.
Insecurity grips the person who declares bringing in US dollars, he said.
In this case, the American greenback career goes for hundi avoiding the formal channels just to feel safe, he said.
The revenue officials argue that they get deprived of the capital in case of undeclared entry of the US dollars.
“Better, let them bring and roll the dollar in the economy and help generate revenues.”
Such issues need to be relaxed for increasing the reserves in the banking sector, he said.
The safety of the capital needs to be enhanced so capital flights do not take place, the former state minister said.
However, the situation in other countries is different thanks to the safety of capital and individuals.
For instance, the rule of law is high in Thailand and the Thais are not that much interested in taking away capital from their country.
The brain drain can also be stopped if the rule of law can be established even before establishing democracy in Bangladesh, he said.
Similarly, gold import rules need to be eased so the local entrepreneurs can bring in the precious metal easily and make value added business here the way businesses are doing in many other countries like India and Dubai and creating numerous jobs.
Daily Star