Bangladesh's cabinet Monday approved a proposal to float a sovereign wealth fund with its foreign currency reserves to pave the way for future mega infrastructure investment.
After the cabinet meeting with Prime Minister Sheikh Hasina in the chair, Spokesman Mohammad Shafiul Alam told reporters that the cabinet gave its initial approval for the Bangladesh Sovereign Wealth Fund with an authorized capital of 10 billion U.S. dollars.
He said the fund will be formed in next five years by contributing 2 billion U.S. dollars each year.
According to the cabinet secretary, the fund will help the government finance mega infrastructure projects, for which the government usually loans from local and foreign sources.
Bangladeshi Finance Minister AMA Muhith had earlier announced the formation of the fund with a part of hefty foreign currency reserve lying idle.
Bangladesh's foreign exchange reserves crossed the 32 billion U.S. dollars mark in December on a steady inflow of remittances.
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