Dhaka: The Cabinet on Monday approved a proposal for formation of Sovereign Wealth Fund with authorised capital of $ 10 billion, aiming to utilise country’s foreign currency reserves in multifaceted ways.

The approval to the proposal, moved by the Finance Division, came from the regular weekly meeting of the cabinet held at Bangladesh Secretariat in Dhaka with Prime Minister Sheikh Hasina in the chair.

Briefing reporters after the meeting, Cabinet Secretary Mohammad Shafiul Alam said, the government would form the fund primarily with $ 2 billion from the country’s foreign currency reserve.

‘Later, the amount of the fund would be raised to $ 10 billion in phases taking $ 2 billion every year from the reserve money,’ he said adding that through this there would have no adverse impact on the country’s economy.

Shafiul Alam said the government could utilise the Sovereign Wealth Fund for the development of any sector of the country considering the greater interest of people.

‘Necessary laws and rules as well as befitting structures would be framed for the purpose later on,’ he added.