Current flow of remittance to reduce deficit in balance of payment: Ministry

DHAKA, Bangladesh, July 22 (BSS) - The finance ministry of Bangladesh expects the deficit in the current balance of payment would be reduced by next two fiscals with a higher flow of remittance from expatriate Bangladeshis combining with the existing foreign exchange reserve.

"Unless there is no major domestic and international trouble, existing reserve of foreign currency coupled with the gradual increase of foreign remittance will rapidly bring downthe deficit," a finance ministry official said.

Referring to the proposed mid-term budget structure for the next three years, the official said the deficit would be negative against the GDP as the foreign exchange reserve and remittancewould grow substantially in next three years.

The analysis said the amount of the foreign currency reserve was 2.7 billion US dollar in 2003-2004, 5.1 billion in 2006-2007and 5.6 billion in 2007- 2008.

"If the current trend continues the amount will stand at 6.4 billion US dollar in 2009-2010 and 6.5 billion in 2010-2011,"according to the analysis.

The foreign remittance was just 1.9 billion US dollar in 2000-2001 against 6.0 billion in 2006-2007, which contributedsignificantly to reduce the deficit in the balance of payment.

"The deficit will only 1.3 percent of the GDP," it added.