Govt allocates Tk11 crore to bonds from Universal Pension Scheme fund: Finance minister

The government has allocated Tk11.31 crore for investment in bonds, utilising funds from the Universal Pension Scheme, Finance Minister AHM Mustafa Kamal said today.

Speaking at a media briefing, the finance minister said various initiatives like these types of investments exist worldwide.

Many countries source funding from pension funds, and the pension fund has become the alternative to the earlier provident fund system, he said.

Addressing the briefing, Finance Secretary Khairuzzaman Majumder said approximately 15,000 people have registered for the pension scheme by paying subscriptions, resulting in a total deposit of Tk12.54 crore as of Sunday (22 October). 

"Out of this amount, Tk11.31 crore has been invested in 10-year treasury bonds at a 10.5% interest rate," he said.

He further emphasised that the government is committed to carefully managing the funds deposited in the pension scheme and has executed a secure investment plan by allocating Tk11.31 crore to treasury bonds.
 
Briefing reporters, the finance minister said the government is working to bring down the prices of essentials and control inflation.

He also expressed hope that inflation will see a decline in the coming days.

Kabirul Ezdani Khan, executive chairman of the Universal Pension Authority, also addressed at the press conference. He highlighted the introduction of schemes at Tk2,000 and Tk3,000 to make the pension system more appealing to expatriates. 

The government rolled out the Universal Pension Scheme to much fanfare on 17 August. 

Around 13,000 registered in the first month. 

The scheme has been largely lauded, but questions have been raised about its timing and viability given both the current economic and political situations.